Above: AirAsia and other low-cost airlines continue to make inroads in the aviation market.
As punitive fuel prices and receding economies threaten to make 2012 a year to forget for the airline industry, a new survey has given Asia’s established carriers one more thing to worry about.
A report by Nielsen Holdings and Campaign Asia-Pacific, a marketing industry magazine, surveyed 400 people in 12 Asia-Pacific countries and the results indicate that no-frills airlines are increasing their brand reputation at the expense of their full-service older siblings.
Commenting on the survey, Therese Glennon, a managing director at Nielsen, said the data reflected an “economic reality” and that “as the demand for budget travel increases, as the economic situation deteriorates, you see a lot of these bigger airlines adjusting their business models.”
Cathay Pacific’s chief executive told the UK Financial Times recently that the Hong Kong-based carrier had no plans to introduce a low-cost alternative, and that it was continuing to expand its market share by increasing capacity on existing routes.