When I was watching Bloomberg News yesterday, there were plenty of airline related news that reflects the current state of air travel in Asia.
Qantas On The Brink
Qantas’ debt was downgraded to junk, it projects a half year loss of $300 million and there is some sort of Qantas Sale Act that limits the foreign ownership of the airline. There is a good opinion piece about this in The Australian that you can access here.
Nok Air & Scoot to Launch NokScoot
Nok Air is a low cost airline based in Bangkok’s Dong Mueang airport and flies to destinations in Thailand and some nearby countries. The airline is partly owned by Thai Airways.
Nok is now teaming up with Scoot, owned by Singapore Airlines, to launch an international medium-haul service using wide-body airplanes. You can read more about this at the Bangkok Post here.
China Airlines & Tiger Air To Launch Tiger Taiwan
Tiger Air, 33% owned by Singapore Airlines, is teaming up with Taiwanese China Airlines to launch Tiger Taiwan. You can read more about this at Bloomberg News here.
AirAsia X Major Airbus Order
Kuala Lumpur based AirAsia X is planning to make a significant airplane order from Airbus this week. You can read more about this on Bloomberg News here.
It is truly remarkable all the recent developments in Asian aviation. New airlines are popping up all over the place and older ones such as Qantas are having hard time adapting to the new and more competitive environment.
The main driver is that the population in many countries are becoming more middle-class and the demand for air travel will grow significantly in the next 20 years. The market share of these LCC’s will grow significantly.
Let’s face it, for shorter flights of 1-3 hours, I don’t care about services offered that much. AirAsia, Nok, Lion Air, etc. will do the trick just fine.