Air Transport Research Society president Professor Tae Oum, speaking at CAPA's LCCs & New Age Airlines in North Asia conference in Macau, predicted (05-Sep-2012) there is room within Asia for six to seven "mega LCCs" bigger than legacy carriers. Currently the region has three competing pan-Asian carriers: AirAsia, Jetstar and Tiger Airways.
There is room for six to seven mega LCCs in Asia: Air Transport Research Society president
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Amadeus and Navitaire: a dual brand strategy allowing greater airline hybridisation
As airlines have embraced dual brand strategies to reach full service and low cost growth aviation IT has responded, as seen with Amadeus' acquisition of Navitaire, which mostly but not exclusively powered the passenger service systems (PSS) of LCCs. In the first six months since the deal closed Navitaire has added 230m passengers boarded, to Amadeus Altea's 393m. Navitaire passengers account for 37% of Amadeus' total.
Having significantly grown its market share, and with past LCC product forays not having worked out, Amadeus receives a new business stream. Some Navitaire customers (Ryanair, AirAsia, IndiGo) are larger than Altea customers and have high growth ahead of them. A second benefit is the Navitaire acquisition supporting Altea customers. By owning both products Amadeus can improve connectivity between Altea and Navitaire airlines. Most of Altea's large customers – Lufthansa, IAG, AF-KLM, Qantas and JAL – have an LCC operating Navitaire software. Of Navitaire's passengers – 35% are on airlines that are LCC units of full service airlines. Other airlines may be holding out on pursuing partnerships and connectivity until there is a cheaper, simpler and streamlined way.
It may seem that the Amadeus-Navitaire marriage is about full service and low cost segments, but its greatest strength is the role it will have in the hybrid segment. Hybridity is growing, and Amadeus-Navitaire could galvanise further expansion.
Malindo Air plans more rapid expansion in 2017 as it rebrands, and closes in on Malaysia Airlines
Malaysia’s Malindo Air is poised to have a momentous year in 2017, with more rapid expansion and a highly anticipated rebranding. Malindo plans to adopt the Batik Malaysia brand in early 2017, positioning it alongside Indonesia-based Batik Air as the two full service airlines in the Lion Group.
Malindo has been one of Asia’s fastest-growing airlines since it launched services in Mar-2013. It recently reached the 40-aircraft milestone, after adding an astonishing 13 aircraft in just six months. Malindo plans to end 2016 with a fleet of 42 and take at least 10 additional aircraft in 2017.
The focus in 2017 will mainly be on adding capacity to existing destinations, improving connectivity as it looks to drive more transit and interline traffic. However new routes to Australia, China and Saudi Arabia are planned in early 2017, followed by potential new routes to Japan, Korea and Pakistan later in the year – leveraging the improved range of the 737 MAX.