AIRLINES
The low-cost carrier (LCC) business model has proved successful
throughout the world but particularly so in Asia Pacific. Typical
LCC strategies include operating at secondary airports, flying
a single airplane type, increasing airplane utilization, relying
on direct sales, offering a single-class product, avoiding
frequent-flyer programs, and keeping labor costs low. Over the
past 10 years, the region’s LCCs have generated an average
annual growth rate of 24.5 percent. By comparison, Europe’s
LCCs grew 13.4 percent annually during the same period,
and North America’s grew a modest 2.2 percent annually.