This report provides an overview of the activities of low-cost carriers (LCCs) based in Asian countries. While the scope of this report covers North East Asia, South East Asia and South Asia, the primary focus is on the principal LCC markets, which include the following countries: India; Indonesia; Malaysia; the Philippines; Singapore; and Thailand. Meanwhile, budget air travel has yet to develop to any great extent in China, Japan, Indochina (Cambodia, Laos and Vietnam) or South Korea, due to either cost factors (Japan especially), government protection of network carriers (China in particular) or competition from high-speed rail (especially in Japan and Korea, but also coming in China).

Nevertheless, the development of the LCC sector in all the aforementioned countries has been detailed in the report. In fact, many so-called LCCs in Asia are really hybrids that do not adhere very strictly to the LCC business model, which calls for:

Point-to-point flights to avoid the cost of baggage handling and maximise use of aircraft

Unbundled charges such as in-flight food and beverage, luggage and sports equipment checking, and priority boarding

Use of one type of aircraft to rationalise maintenance costs

Single-class cabins to minimise the cost of in-flight services

Use of secondary airports with lower fees

Bookings channelled through the airline’s proprietary website to save on distribution costs.