IATA: Asian Low Cost Carriers Expected To Do Well In Harsh Environment

From Yong Soo Heong GENEVA, Dec 8 (Bernama) -- Amid difficult conditions for airlines worldwide, low cost carriers are expected to do well as passengers opt for cheaper travel, said International Air Transport Association (IATA) Director-General and Chief Executive Officer Tony Tyler. He said Asian low cost carriers had successfully demonstrated their ability to succeed in difficult environments through lower costs and increased efficiency. He said such an approach would augur well for them, especially if the economic environment became more difficult and air passengers opted for low cost travel plans. Speaking at a question and answer session at IATA's Global Media Day here Wednesday, he said Asian low cost carriers, including recent start-up airlines, had been doing well, especially in terms of implementing innovation and efficiency. At the same time, he said the traditional carriers had also been showing good revenues through their own efforts. "They have been successful in their own corners," he said, adding that enlightened government policies and the entrepreneurial drive among Asian carriers had also helped to bring about positive results. However, he said a dampener could be the price of fuel as it affected every carrier in the business. Low cost carriers are estimated to account for about a quarter of the global aviation business. -- BERNAMA