Slowdown: Asia's aviation market bright
"By establishing low-cost subsidiaries, several Asian full service airline groups are now well positioned to capture the anticipated growth at the lower end of the market," he said.
In this context, Herdman referred to the launch of three new LCCs in Japan, the launch of new SIA long-haul low-cost carrier Scoot and the new hybrid carrier Thai Smile as well as the recent partnership agreements between Emirates and Qantas
and between Virgin Australia and Tiger Airways.
Indian carriers like Jet Airways and Air India have also been operating no-frill models for a few years now.
The AAPA study said the downturn in Europe and the US has had a "big hit" on Asian carriers which currently account for about 40 per cent of the global air cargo market.
Even though profits in Asia and globally have decreased steadily since 2010 due to the "relentless squeeze by high oil prices", Asian carriers, despite the slowdown, have continued to be more profitable than their counterparts in other regions, the AAPA study said.
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