AVIATION - Asian Aviation Must Face Up To Low Cost Challenge

ASIATravelTips .com, 24 January 2007

Centre for Asia Pacific Aviation (CAPA) Executive Chairman, Peter Harbison, warned on Tuesday, that Asia’s major incumbent carriers risk becoming irrelevant, or even face extinction, if they fail to grasp the changes in the market occurring due to LCCs.
Opening the Low Cost Airline Congress in Singapore, Mr Harbison said, “The aviation world will never be the same. Any new entrant must be low cost and any existing airline not heeding this message will become an ex-airline. We haven’t yet seen a major international airline shut down in this region – although Ansett Australia’s collapse was contributed to by the entry of LCCs domestically – but it will happen.”

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