Budget Airlines..
Travelling by air is no longer for the elite class. The explosion of budget airlines certainly benefits the lower-income group. With ridiculous advertised air ticket prices like 49cents(or is it 29cents?), its even cheaper than the price of an egg a few weeks back. Those who have never flew on an aeroplane before can now easily fulfil their dream.
To me, budget airlines pose no threat to full-fledged airlines. Both are targetting different types of customers. The former, as explained, are also targetted at backpackers or those who already have secured accomodation at their holiday destination. The price of 49cents is only for 1 way. One still has to pay for the return air-ticket, airport taxes, airport transfer, hotel accomodation, spending expenses etc. All these adds up to at least S$300 (Unless you intend to stay at the red-light district in Bangkok). Exorbitant low price tickets are just a way to con mindless people into buying them without actually considering the full cost. One would be better off buying a more hassle- free f&e package by Thai Air or Singapore Airlines which includes all of the above at a minimum price ofless than $300. I wonder why so many people do not think before purchasing.
Full-fledged airlines are targetted at business travellers and people who would like to enjoy food and drinks, wider seats, more leg room, inflight entertainment etc. (And also at those who did their sums before deciding that budget carriers are simply not as cheap as they suggest). Business travellers make up the bulk of air travellers. I don't think any business company would purchase an Air Asia ticket for its employees to go to, let's say, KL. The poor employee would have to take a bus to somewhere in Malaysia first, and then catch a flight to KL. After that, he still has to take a bus/taxi to the city centre. Even though the amount paid is lower, the time travelled is much longer. In the business world, time is money. And of course, there are people like me who would rather pay a bit more to enjoy the comforts and bring in more luggage at no extra cost rather than squeezing like packed sardines into free seating aeroplanes and having to pay more if my luggage weight exceeds the pathetic minimum weight set by budget airlines.
Thus, in my humble opinion, full-fledged carriers should not bother much about the entrance of budget airlines. Budget airlines should only compete among themselves. With such low profit margins, it's only a matter of time before one of them bleeds profusely to death.
To me, budget airlines pose no threat to full-fledged airlines. Both are targetting different types of customers. The former, as explained, are also targetted at backpackers or those who already have secured accomodation at their holiday destination. The price of 49cents is only for 1 way. One still has to pay for the return air-ticket, airport taxes, airport transfer, hotel accomodation, spending expenses etc. All these adds up to at least S$300 (Unless you intend to stay at the red-light district in Bangkok). Exorbitant low price tickets are just a way to con mindless people into buying them without actually considering the full cost. One would be better off buying a more hassle- free f&e package by Thai Air or Singapore Airlines which includes all of the above at a minimum price ofless than $300. I wonder why so many people do not think before purchasing.
Full-fledged airlines are targetted at business travellers and people who would like to enjoy food and drinks, wider seats, more leg room, inflight entertainment etc. (And also at those who did their sums before deciding that budget carriers are simply not as cheap as they suggest). Business travellers make up the bulk of air travellers. I don't think any business company would purchase an Air Asia ticket for its employees to go to, let's say, KL. The poor employee would have to take a bus to somewhere in Malaysia first, and then catch a flight to KL. After that, he still has to take a bus/taxi to the city centre. Even though the amount paid is lower, the time travelled is much longer. In the business world, time is money. And of course, there are people like me who would rather pay a bit more to enjoy the comforts and bring in more luggage at no extra cost rather than squeezing like packed sardines into free seating aeroplanes and having to pay more if my luggage weight exceeds the pathetic minimum weight set by budget airlines.
Thus, in my humble opinion, full-fledged carriers should not bother much about the entrance of budget airlines. Budget airlines should only compete among themselves. With such low profit margins, it's only a matter of time before one of them bleeds profusely to death.
posted by The Aspiring Chef @ 1:00 PM
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