Online Travel Magazine
Issue: March 2006
Low-cost Airlines
Low-cost Airlines
by Peter Graham
When Malaysian businessman Tony Fernandes launched a no-frills, low-cost airline in 2002 with only two planes, few people realised the effect it would have. From only four routes, Air Asia set off a low-fare revolution that changed the face of the airline industry in the region. It is a stunning success story and now has 35 aircraft and flies millions of passengers across south-east Asia every year.
However, over the past four years it has been joined by more than 30 new low-fare carriers in Thailand, Singapore, the Philippines, Indonesia, India, China and Japan. Who would have believed a few year's back that a flight ticket from Bangkok to Singapore would be on offer for as little as US$30?
As the number of people flying has increased, so has the demand for hotel accommodation and other products. The region's hotels are experiencing boom times as more people can afford to visit. Both Hong Kong and Macau are due to launch budget carriers later this year, but they will also be tackling the lucrative routes to Europe and America.
Oasis will be Hong Kong's first low cost carrier. It aims to fly non-stop to London, Milan, Berlin and Cologne in Europe and Chicago and Oakland in the USA. Viva Macau, due to launch in summer, is aiming to bring tourists to the islands' casino resorts from Europe, the Middle East, North America and Africa.
What makes a low-cost carrier? Traditionally, it offers low fares in exchange for cutting back on traditional services. You should not always expect to get a reserved seat, a free inflight snack and drink or even watch an inflight movie, but on some Asian budget airlines you can get all of this and still pay the low fare. The airlines cut costs by sticking to one or two types of aircraft, achieving faster turnaround times at airports and by selling tickets over the Internet, eliminating commissions paid to travel agents. Most tickets are sold on a sliding price scale; the earlier you book, the cheaper the seat.
Here is a list of some of the region's low-cost airlines, listed under the countries from which they operate:
China (China United, Okay Airways, Spring Airlines)
Thailand (Thai Air Asia, Nok Air, One Two Go)
Malaysia (Air Asia)
Singapore (Jetstar Asia, ValuAir, Tiger Airways)
South Korea (Hansung Air, Jeju Air)
Hong Kong (Hong Kong Express, Oasis launches later this year)
Macau (Viva Macau launches later this year)
Philippines (Air Philippines, Cebu Pacific Air)
Indonesia (Adam Air, CitiLink, Lion Air)
Japan (Air Do, Air Next, Ibex Airlines, JAL Express, Skymark Airlines, Skynet Asia Airways)
India (Air Deccan, Air India Express, Go Air, Kingfisher, Paramount Airways, spiceJet).
There are no low-cost carriers based in Myanmar, Laos, Cambodia, Vietnam or Taiwan, but many of these destinations are served by cheap airlines from other centres.
If you want to book a ticket with a low-cost carrier, the first trick is to find out which airlines serve your intended route. With lower advertising budgets than traditional airlines, this is often quite difficult. For your convenience we have listed the major budget carriers serving the three prime destinations - Singapore, Thailand and Hong Kong.
Singapore:
The major budget carriers operating to and from this island state are JetStar Asia and Tiger Airways. JetStar Asia covers most major destinations in south-east asia, as well as Bangalore and Kolkata in India. It is the only direct budget operator between Singapore and Hong Kong and also the only Singaporean low cost airline flying to Phnom Penh and Siem Reap in Cambodia, Yangon in Myanmar and Taipei in Taiwan.
Tiger Airways covers Bangkok and Phuket in Thailand, Macau, and Padang in Indonesia. It is the only budget carrier direct to Vietnam from Singapore and the only budget choic to Australia, flying from Singapore to Darwin). Following the Ryanair operation, Tiger often flies to secondary airports - to Macau instead of Hong Kong, and to Clark Field, serving Manila, rather than to the Philippine capital's main airport.
Other low cost airlines serving Singapore include Adam Air (to Jakarta) and Air Asia. Low fare airlines are Bangkok Air (direct service to Koh Samui in Thailand) and Valuair (only budget service direct to Bali. Also to Jakarta and Surabaya).
Thailand:
The three main operators in Thailand are Thai Air Asia, Nok Air and One-Two-Go. Thai AirAsia was launched in January 2004. It was set up as a joint venture by Shin Corporation and Air Asia founder Tony Fernandes, but the shareholding was recently changed due to the sale of Shin Corp stock by Thai Prime Minister Thaksin Shinawatra's family. Now 50% is owned by a Thai company, Asia Aviation, 49% by Fernandes and 1% by a Thai investor. Based primarily in Bangkok, the airline serves Thailand's major domestic destinations, as well as Malaysia (Kuala Lumpur, Penang and Kota Kinabalu), Singapore, Macau, Xiamen and Hanoi.
Nok Air, a subsidiary of Thai Airways International, flies from Bangkok to domestic destinations such as Phuket, Chiang Mai, Hat Yai and Udon Thani. One-Two-Go covers the major domestic routes within Thailand with fixed-price tickets. Other Low Cost Carriers Serving Thailand are JetStar Asia ( Bangkok and Phuket to Singapore) and Tiger Airways (Singapore to Bangkok, Chiang Mai, Hat Yai, Krabi and Phuket). Low fare airlines include Bangkok Air (mainly on routes to Koh Samui) and Orient Thai (to Incheon in South Korea and Hong Kong).
Low-cost options to and from Hong Kong will increase when Oasis is launched later this year. Hong Kong Express Airways offers a service to Guangzhou, while Cebu Pacific Air covers routes to the Philippines and JetStar Asia to Singapore. Thai airline Orient Thai flies between Bangkok and Hong Kong, while Bangkok Airways offers a service to Koh Samui.
Air Asia dominates low-cost flights within Malaysia and to neighbouring territories, although Adam Air offers services between Kuala Lumpur and Indonesia. Airlines which offer flights to and from Indonesia include Adam Air, Air Asia, Citilink, Lion Air, Mandala and Tiger Airways. Low fare options are Gulf Traveller and Valuair.

Low-cost options to and from the Philippines are Air Asia, Air Philippines, Asian Spirit, Cebu Pacific, JetStar Asia, SE Air and Tiger Airways. Air Arabia offers cheap flights between Sri Lanka and the United Arab Emirates. Airlines that offer budget flights to Macau include Air Asia and Tiger Airways, while Viva Macau will start services to Europe, the Middle East and America later this year.
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Low-cost Airlines
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Asia's low-cost carriers are changing the face of airline travel in the region. With rock-bottom fares, many more people can afford to fly. As the number of travellers rises,
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