LCC Miscellany

[jpatokal]

From http://www.manager.co.th/IHT/ViewNews.aspx?NewsID=9490000004399

Despite high fuel prices and fiercer competition, Thailand’s fledgling low-cost airlines are really taking off. They are expanding their route networks this year, with expectations of even better performances.

Both Thai AirAsia and Nok Air, which have managed to make money in the daunting environment of tough competition and jet fuel hikes, said that the only obstacle to their expansion plans is a lack of aircraft.

...

Probably the only person who is not happy with the current situation is Udom Tariprasongchai, Orient Thai Air’s owner and chief executive officer. Orient Thai Air’s fares are cheaper than Nok Air’s, but higher than Thai AirAsia’s.

Udom accuses Nok Air of being subsidized by THAI, which is a shareholder of the low-cost carrier, and his two direct competitors of confusing the market by advertising cutthroat fares but selling tickets at high prices.

Udom said that because of the competition among low-cost airlines, most domestic flights are not generating any profit and so he has to rely on international flights to keep his airline afloat.
Any bets on when Orient Thai finally kicks the bucket?

[jpatokal]

Cheap long-distance flights from Oz to Thailand (http://www.theaustralian.news.com.au/story/0,20867,19925227-23349,00.html):
The promotional fares, which also feature $199 one-way specials from Sydney to Phuket and $249 for Sydney-Osaka, include taxes and charges.

They are good for travel between the international airline's planned November 23 start date and June 30 next year, with services to six destinations phased in between November and March.
According to a Bangkok Post article yesterday (which already went poof), one-way fares from Thailand will be as low as B999. No wonder full-service carriers like Austrian are pulling out (http://www.luchtzak.be/article12182.html)...

[jpatokal]

I would imagine this all depended on load, no? So basically they're saying that their first flight made an operational profit. But you're right, that should be news enough - but no, they had to go with the meaningless hyperbole.
LCC pricing models are simple, so yes, if you get a full flight, you'll make money on it. Legacy carriers and their famously complicated yield management systems make things more difficult: in the initial phase, loads are often driven up with promotions, and it's possible (if unlikely) to have a 100% full flight that loses money. Sometimes you even get cases where the carrier realizes that the high-revenue traffic they were looking for doesn't materialize, and the flight is terminated even though the loads were high.

[Ganyc]

After travelling with so many budget airlines in the last three years, below are my conclusions for your reference:

Most Courteous Budget Airline Cabin Crew Team in Asia: Valuair and Jetstar

Most Safety-Conscious Budget Airline Cabin Crew Team: Tiger Airways

Least Safety-Conscious Budget Airline Cabin Crew Team: China Southern Sanya Airlines, Hainan

Cheerful Budget Airline Cabin Crew Teams: Thai AirAsia, Thailand, Valuair, Singapore and Cebu Pacific Air, the Philippines

Beautiful Budget Airline Cabin Crew Teams: Sriwijaya Air, Indonesia and Adam Air, Indonesia

Ugliest Budget Airline Cabin Crew Team (in terms of inflight costume): Tiger Airways, Singapore

Brightest Budget Airline Cabin Crew Team: Adam Air, Indonesia

Friendliest Budget Airline Cabin Crew Team: Indo AirAsia, Indonesia

Laziest Budget Airline Cabin Crew Team in ensuring no food is taken onboard for consumption: AirAsia

Hardworking Budget Airline Cabin Crew Teams in ensuring no food is taken onboard for consumption: Tiger Airways, Valuair and Jetstar

Hardworking Cabin Crew Teams in meeting the needs of high-demanding passengers: Riau Airlines, Indonesia and Batavia Air, Indonesia

Friendly Budget Airline Town Office Customer Service Teams: Adam Air, Singapore and Thai AirAsia, Singapore (the friendliest)

Rude Budget Airline Customer Service Teams: Tiger Airways, Singapore, Adam Air, Indonesia, Batavia Air, Indonesia and Mandala Air, Indonesia

Pretensious Budget Airline Customer Service Teams: Garuda Citilink, Indonesia, XpressAir, Indonesia, Tiger Airways, Singapore, PB Air, Thailand (in respective countries)

Cheapest Budget Airline to fly with: Kartika Airlines, Indonesia

Most Expensive Budget Airline to fly with: Jetstar

Expensive Budget Airlines: Jetstar, Air India Express, Tiger Airways (routes to Haikou and Guangzhou), AirAsia (route to Shenzhen)

Best Budget Airline Inflight Service in Indonesia: Sriwijaya Air, Indonesia

Best Budget Airline Inflight Refreshments in Southeast Asia: Tiger Airways, Singapore

Lousiest Budget Airline Inflight Refreshments: Wings Air, Indonesia

Cheapest Budget Airline routes: Kuala Lumpur to Senai, Kuala Lumpur to Penang, Singapore to Phuket, Singapore to Hat Yai, Batam to Pekanbaru via Dumai

Safest Budget Airline flights offered: Tiger Airways (offering AIG travel insurance upon booking)

Best Budget Airline in terms of punctuality: Batavia Air, Indonesia

Worst Budget Airline in terms of flight punctuality: Thai AirAsia, Thailand and AirAsia, Malaysia

Budget Airline with the most number of flight cancellations in a year: Kartika Airlines, Indonesia

Best Budget Airline in terms of flight safety in Asia: Tiger Airways, Singapore

Worst Budget Airline in terms of flight safety in China: China Southern Airlines, China

Worst Budget Airline in terms of flight safety in Indonesia: Adam Air, Indonesia

Worst Budget Airline in terms of flight safety in Thailand: Thai AirAsia

Best Budget Airline Inflight Magazine in Southeast Asia: TigerTales, Tiger Airways

Best Budget Airline Inflight Magazine in China: 95080 Travel & Life, Shenzhen Airlines

Best Long-haul Budget Airline Inflight Magazine: Oasis, Oasis Hong Kong Airlines

Best Budget Airline Inflight Magazine in Thailand: One2GO, One-Two-GO Airlines

Most popular colour of Budget Airlines: Red (Thai AirAsia, Indo AirAsia, AirAsia, Trigana Air, Lion Air, Wings Air, Shenzhen Airlines, China Southern Airlines)

[The Enforcer!]

budget airlines
My favourite budget airline is British Airways First Class ... I just don't have the budget!

The Enforcer!

[GWR]

Thailand to control low-cost airlines

Thailand's Civil Aviation Department will enforce new regulations to control budget airlines beginning later this month allowing the department to examine promotional plans of the airlines following passenger complaints.

The department will soon announce new rules for operators of no-frills airlines.

Drafts of the new regulations were given to each low-cost carrier, so each airline has the opportunity to share its opinion before the enforcement of the new regulations, according to Director-General Chaisak Angsuwan.

The new regulations will cover marketing strategy plans, and air fare-related issues in particular.

All economy airlines will be required to submit promotional campaigns and marketing plans to the department for consideration. If the promotions are misleading or otherwise affect passengers and competitiveness in the aviation industry, the department will not approve the plans.

The promotional prices of air tickets must be checked by the department and announced to the public to prevent the problem of intending passengers being unable to purchase the tickets at the promotional prices proposed by the airline.

If the consumer is deceived, the maximum punishment will be to revoke the airline's license, Mr. Chaisak said. (TNA)

Link may expire:

http://www.bangkokpost.com/breaking_news/breakingnews.php?id=120404

[jpatokal]

I think they're just referring to their advertising. As I'm sure you well know, those "9 baht" etc fares turn out to be a lot more when all taxes and surcharges are slapped on...

Then again, it's not like LCCs are the only people doing this. An actual ticket extract from a notionally full-service airline:

Navcan and Surcharges 44.99
Fuel Surcharge 165.00
Canada Airport Improvement Fee 15.00
U.S.A Transportation Tax 31.64
U.S Agriculture Fee 5.24
Canada Security Charge 17.00
U.S Passenger Facility Charge 4.71
Canada Goods and Services Tax (GST/HST #10009-2287) 0.90
Canada Quebec Sales Tax (QST #1000-043-172) 1.19
Taiwan Airport Service Charge 9.59
September 11 Security Fee 2.62
U.S.A Immigration User Fee 7.33

:mad:

[Ganyc]

i think Thailand is setting a precedence in Asia by warranting all low-cost airlines to publish full price including fare, taxes and surcharges. That should be the correct way for Asia. At least it will curb consumption during an era of high fuel prices. Customers will reconsider whether to fly during the period chosen. Now buying a low-cost airline ticket seems like striking lottery as it lures you to purchase more and fly more. It is probably the third undesirable social habit at the end of the day after gambling and clubbing.

[jpatokal]

Without standards, Thailand's budget airlines could suffer from a massive shutdown like in India, where the damage was huge.
Huh? What massive shutdown!? Not a single LCC in India has gone bust, Air Deccan was just picked up by Kingfisher...