A flood of low-cost airline activity is hitting Asia, with Macau and Thailand identified as the latest possible targets.
The no-frills concept has had a tentative start in the region, as compared with Europe and North America, with only a few operators starting up. But there have been signs in recent months that it is only a matter of time before budget carriers are operating internationally within Asia, probably starting from Malaysia and Singapore.
Singapore Airlines says it is studying the creation of a low-cost subsidiary, while an independent group in Singapore has been looking to establish a no-frills carrier called ValuAir.
In neighbouring Malaysia, fast-growing domestic carrier AirAsia - regarded as a budget pioneer in the region - has said it hopes to expand into the international market next year, possibly with flights to Thailand.
Thailand's national carrier Thai Airways International is also looking to start a low-cost airline in a joint venture with another company. The airline says it could be operating as early as this year.
Macau is meanwhile seen as the latest possible base for a low-fare airline, which could involve the transformation of Air Macau from a full-service operation.
Air Macau is controlled by Hong Kong-listed China National Aviation Corporation, and sources close to that company say studies that could lead to a revamp are under way.
In a related development, there are reports Tony Ryan, founder of Ryanair, albeit before its low-cost days, is holding talks on acquiring a stake in Air Macau.
Macau, which is now a Special Administrative Region of China, is best known for gambling, but most of Air Macau's revenues come from carrying passengers between Taiwan and points in China via its home base.
Non-stop flights between China and Taiwan are banned, but are expected to be allowed at some point. Air Macau's backers feel many passengers will then choose to bypass Macau, requiring a radical shift in the airline's focus.
Source: Airline Business
