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This article explores the influence of low cost airlines on the ASEAN aviation industry, focusing on their financial performance, routes, and achievements. It also discusses the strengths, weaknesses, opportunities, and threats faced by these airlines in the region.
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Low Cost Airlines influence on ASEAN Aviation Industry By: Faisal Shahim
ASEAN • Established on August 8th, 1967 in Bangkok • Economic growth, social progress and cultural advancement • Mutual respect • AFTA • FAEEC • Growing region • Important Strategic Region
THE REGION AUSTRALIA
BIG PLAYERS of ASEAN • SINGAPORE GDP growth: 2.7%GDP: US$ 270.02 billion (2011 estimate)(PPP: $327.557 billion )Inflation: 3.5%Population: 5.37 million GDP per head: $60,900 • MALAYSIA GDP growth: 4.4%GDP: $292 billion (2011 estimate) (PPP: $473bn)Inflation: 2.6%Population: 29.0mGDP per head: $10,050
ASEAN AIRLINES • Indonesia: 1) Air Asia Indonesia 2) Lion Air 3) Mandala Airlines 4) Citilink • Singapore: 1) Jetstar Asia Airways 2) Scoot Airlines 3) Tiger Airways • Thailand: 1) Nok Air 2) Bangkok Airways 3) Thai AirAsia 4) Solar Air • Vietnam: 1) Jetstar Pacific 2) Viet Jet Air 3) Air Mekong • Malaysia: 1) AirAsia 2) AirAsia X 3) FireFly 4) Maswings
Achievement & awards • 'Best Brand Experience for Low Cost Carrier' by Ad Asia Magazine • 'Best Low Cost Airline, Southeast Asia & Asia (2006 & 2008)' -Skytrax Award • 'Top 10 Airlines by Passenger Carriage (2006 & 2007)' -Changi Airline Award from the Civil Aviation Authority of Singapore (CAAS) • 'Best Asian Low-Cost Carrier (2006 & 2007)' -as well as TTG Travel Awards
SWOT ANALYSIS Strengths • Low Cost • Expansion/ Customer Service • One kind of fleet • Booking Sites Weakness • No proper maintenance / Maintenance facility • Too Much Delays • Accidents, Incidents and Fatalities Opportunities • Growing Middle Class • Merge or Collaboration • Open Skies Policy Threats • Government Intervention/ Corruption • High Fuel Prices • Certain Charges like Landing fees, security fees, etc
CONCLUSIONS • Huge Population • Growing Middle Class • Tourist Areas • Sustainability
REFERENCES • AirAsia Bhd. (n.d.). About Us. Retrieved March 18, 2013, from Air Asia : http://www.airasia.com/ot/en/home.page • AirAsia Bhd. (n.d.). Financial Statements for airasiabhd (AIRA). Retrieved March 17, 2013, from Bloomberg Business Week : http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=AIRA:MK • Bahari, B. (2013, March 04). Jetstar Asia looks to boost footprint in Malaysia. Retrieved March 17, 2013, from Business Times: http://www.btimes.com.my/Current_News/BTIMES/articles/JETSTAR/Article/index_html • Bhasin, B. (2011). Doing Business in the Asean Countries. New York, NY: Business Expert Press . • Chui, J. N. (2013, January 25). Asian Airlines Slash Fares to Woo Premium Fliers. Retrieved March 17, 2013, from The Wall Street Journal: http://online.wsj.com/article/SB10001424127887323539804578263132805534080.html • Daga, A. (2013, January 2). Southeast Asian airlines risk margins with expansion spree. Retrieved March 17, 2013, from Reuters: http://www.reuters.com/article/2013/01/22/us-southeastasia-airlines-idUSBRE90L09S20130122 • Gangopadhay, A. (2013, February 20). Malaysia's Economy Expands in Fourth Quarter. Retrieved March 18, 2013, from The Wall Street Journal : http://online.wsj.com/article/SB10001424127887323549204578315583755697530.html • Haacke, J. (2009). ASEAN's Diplomatic and Security Culture: Origins, Development and Prospects.Routledge; 1 edition (May 16, 2009). • JetStar Asia . (n.d.). Our Company . Retrieved March 17, 2013, from Jetstar Asia : http://www.jetstar.com/sg/en/home • Jones, L. (2012). ASEAN, Sovereignty and Intervention in Southeast Asia (Critical Studies of the Asia-Pacific). New York : Palgrave Macmillan (January 17, 2012). • Lee, Y. Y. (2011). ASEAN Matters!: Reflecting on the Association of Southeast Asian Nations. Singapore : World Scientific Publishing Company (April 26, 2011). • Raghuvanshi, G. (2013, February 5). Asian Budget Airlines Broaden Revenue Streams. Retrieved March 17, 2013, from Wall Street Journal: http://online.wsj.com/article/SB10001424127887324445904578285472409973906.html • Singapore Department of Statistics . (2013, January 2). Singapore Department of Statistics . Retrieved March 17, 2013, from Ministry of Trade and Industry Statistics : http://www.singstat.gov.sg/news/press_releases/advgdp4q2012.pdf • Tajuddin, A. (2012). Malaysia in the World Economy (1824-2011): Capitalism, Ethnic Divisions, and "Managed" Democracy . Lanham, MD: : Lexington Books (June 14, 2012). • The Economist . (2011). The world in figures: Countries: Malaysia. The World in 2012 . • Tiger Airways. About Us . Retrieved March 18, 2013, from Tiger Airways : http://www.tigerairways.com/au/en/about_us.php • WorldBank. GDP (current US$). Retrieved March 18, 2013, from The World Bank : http://data.worldbank.org/indicator/NY.GDP.MKTP.CD/countries/SG-MY-TH-BN?display=graph