Budget airlines

More fundraising in store as Asia warms to budget airlines

Asia's low-cost carriers will tap debt and equity markets to fund growing market share, says J.P. Morgan transport analyst.
<div style="text-align: left;">
Budget airlines are taking off in Asia (AFP)
</div>
<div style="text-align: left;"> Budget airlines are taking off in Asia (AFP) </div>

As more price-sensitive customers and governments embrace the idea of low-cost carriers LCCs, which have boosted the affordability of flying, this particular market has grown significantly in Asia in recent years.

The market share of intra-Asia routes operated by low-cost carriers has grown to 25% today, from less than 3% 10 years ago, Corrine Png, head of regional transportation research at J.P. Morgan, said in a telephone interview yesterday. The bank expects their market share to rise further to 30% during the next two years and for the low-cost carrier market size to increase to $23 billion in 2014, from the current $18 billion.

...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222