NE Asia's airline groups begin to integrate, coordinating strategy for growth. Part 1
Most Asian full service airlines have responded to LCC competition by establishing groups, in some ways similar to Europe's, but usually with greater differentiation in role and establishment. As a result they have for some time been houses of brands. There was typically limited consolidation in these sprawling mansions; there was also little coordination between the airlines in the group. This has led to redundancy, missed opportunities and confusing marketing. But the Asian market is dynamic, competitive pressures are increasing and constant adaptation is necessary. With experience now of these conditions more strategic thinking is emerging, along with the management resolve to shed complacency.
Brand consolidation is still some time off. Taiwan’s EVA Air and China Airlines are mulling consolidation with their respective regional arms UNI Air and Mandarin Airlines. But on the whole, the number of brands in Asia is growing, especially in mainland China. The initial changes at Asian airline groups include better coordination of group airlines.
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