Santos corporate procurement manager Zarina Carty, speaking at the CAPA Australia Pacific Aviation Summit, stated (09-Aug-2013) that corporate travel buyers over time will start to rely more on low-cost carriers in the Australian domestic market. “To keep people travelling they have to consider LCCs domestically,” Ms Carty said. She added that in other domestic markets such as in the UK and Europe corporate buyers have already started using LCCs and that in time this trend will spread to Australia.
Australian corporate market to start using LCCs: Santos
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Cebu Pacific Air reconsiders Melbourne under Tigerair Australia partnership as Sydney route improves
Cebu Pacific Air is again looking at expanding in the Australia market by launching flights to Melbourne. Efforts in recent months to improve Cebu Pacific’s performance in Sydney, which was launched in 2014, are bearing fruit and the airline is confident with Melbourne it can stimulate further demand in the Philippines-Australia market.
The LCC initially added Melbourne to its network plan in 2015 after the Philippines and Australia forged an extended air services agreement. But Cebu Pacific subsequently decided to shelve plans to launch Melbourne, and has instead been using additional A330 capacity to expand in its domestic and regional international market.
Melbourne is now back on the agenda and is the next priority – leapfrogging Honolulu – for Cebu Pacific’s long haul operation. A new partnership with Melbourne-based Tigerair Australia is a key driver in making Manila-Melbourne a viable route, along with the anticipated rapid growth in Australian visitor numbers to the Philippines.
Tigerair Australia Part 2: LCC looks to Value Alliance to drive near-term growth opportunities
Tigerair Australia has no immediate plans for expanding its international operation, which launched with three routes to Bali in Mar-2016. However, the Virgin Australia LCC subsidiary plans to expand its international network virtually by linking up with partners from the newly formed Value Alliance.
The Bali operation has been relatively successful, despite the use of aircraft wet-leased from its full service, higher-cost parent. However, for now Tigerair Australia is focused on transferring the three Bali routes to its own fleet as part of a transition from A320s to 737s, rather than pursuing growth.
The Virgin Australia LCC subsidiary could potentially pursue international growth once it secures regulatory approvals to operate international services with its own operator’s certificate. Some domestic growth is also possible once it completes the transition from A320s to 737s in 2019.