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Cheaper airlines eye Asia's skies
From CNN's Jill Neubronner
(CNN) -- Cheaper airlines have made business travel a lot cheaper in Europe and the U.S., but will the same thing happen in Asia? Air travelers in developed markets have shown they are willing to give up things like free meals, in-flight entertainment and refundable tickets in exchange for cheaper seats. Discount airlines like Southwest Airlines in the U.S., Europe's Ryanair and Virgin Blue in Australia are thriving. "We are seeing people vote with their feet and moving away from big airlines. People are saying we are not willing to pay for extras," David Huttner from Virgin Blue told CNN. Now, the budget carriers say the timing is right for a move into the Asian market. They cite factors such as lower prices for buying aircrafts, as well as jet fuel. Analysts say Asia is a very different flying environment when compared to its Western counterparts. In recent years Europe has moved towards a single aviation market and America has always been more homogenous. "Asia is very much more fragmented geographically and countries are not as homogenous on [the] political or government level, says Peter Negline an analyst at JP Morgan. "From that level new entrants will have trouble securing market share or securing landing rights," he reiterates. And then there is human nature. In Asia there are always people willing to pay more to get more. "I would think twice. I like the lounges and being close to immigration," one air traveler told CNN. While other Asian travelers are simply skeptical of something new. "What kind of planes they use, what kind of people they use to fly the plane. They really have to build a good reputation," says another flyer. Ready for changeThe discount airlines say they're ready to go up against the major players in the Asian market. "Some big airlines will adjust, others will be left behind and become dinosaurs," David Huttner, Head of Communications and Strategy Virgin Blue, told CNN. "There will be some cannibalization but there will also be tremendous growth. Wherever we have flown in Asia we've seen growth of 20 to 30 percent in terms of families who could travel more and tourists," he reiterates. Australian-based Virgin Blue and Malaysia Air say they are ready to expand their services in to the more competitively priced air tickets. Singapore Airlines says it is also considering it. Analyst say that there is potential in Asia, but warn it will be a case of survival of the fittest, and that only the carriers with the most aggressive cost cuts will survive. However, it is unlikely that the travel landscape in Asia will change any time soon.
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