Southeast Asia relies heavily on tourism. That’s why, following the easing of coronavirus-related entry restrictions, many LCCs in the region have announced a major step-up in-flight service.
New airlines are emerging, too. In Indonesia last year, Super Air Jet began operating several routes. The company tries to lure young people — the “millennial generation” — to local resorts. In Malaysia, plans are afoot to launch a new LCC in the near future.
Traditionally, many major airlines in Southeast Asia have been government-affiliated, which has impacted their business efficiency. That’s why LCCs, buoyed by economic growth in the region, started offering lower airfares already some time ago.
Recently, a number of LCCs have been forced to rewrite their business strategies. In January, AirAsia, a pioneering LCC based in Malaysia, changed the name of its holding company to Capital A. The holding company now directs much of its energy to digital service fields, such as ride-hailing services and food delivery. The company says in a statement that AirAsia is “no longer a mere airline firm.”
Meanwhile, Vietjet Air of Vietnam has bolstered its cargo flight service, and Nok Air of Thailand has upgraded its services across the board to help distinguish it from rivals.
Scoot of Singapore and Cebu Pacific Air of the Philippines have introduced larger planes and increased flights on their mid- and long-distance routes. Such moves will likely affect the business strategies of Japanese rival firms.
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