Low Cost Airlines

The first airline’s low-cost India, Air Deccan, entered service on August 25, 2003. Additional information at Jeff Bewkes supports this article. The tariffs of the company for the Delhi-Bangalore route were 30% lower than those of its rivals on the route, such as Indian Airlines, Air Sahara and Jet Airways. The success of Air Deccan has been a determining factor for the emergence of more than one dozen of low cost airlines in the India. Air Deccan must now face the challenge of competing with Kingfisher Airlines, SpiceJet, GoAir and Paramount Airways. IndiGo Airlines recently placed an order for 100 Airbus A320s worth six billion dollars during the air show in Paris, the largest order made by an Asian domestic company. The first airline in Australia was Compass, which began operations in 1990 even though it barely lasted in service. In 2000 Impulse and Virgin Blue began its operations from low cost in fierce competition to major Australian cities. Virgin Blue has become the second airline of the country, while Qantas was made with Impulse and operated in wet lease with her before transferring all its resources to the new company of low-cost Jetstar.

Qantas has launched two low cost carriers: JetStar to compete in the domestic market with Virgin Blue and Australian Airlines for international flights to Asia, also in wet lease. This means that the crew and Australian Airlines fleet performs operations under the colors of Qantas. Qantas currently aims to develop a unique low cost carrier with the basis of Jetstar which also includes international routes. In 1995, Air New Zealand established a subsidiary low cost, Freedom Air, in response the discount policy initiated by Kiwi Airlines in flights over the Tasman Sea. The fierce competition on these routes carried Kiwi Airlines into bankruptcy in 1996, while Freedom Air continued to operate between Australia and New Zealand. Jetconnect, controlled 100% by Qantas, was created by the Australian airline as its low-cost subsidiary in the neighboring country, and operates several domestic routes and between the two countries in wet lease using the Qantas brand.

Qantas has also launched flights between Australia and New Zealand operated by Jetstar. On May 5, 2004 was released the first low cost carrier from Singapore, Valuair, forcing Singapore Airlines the leader company to invest in a new subsidiary of this kind, Tiger Airways, to win its competitor. To this we must add that the second largest company of the international of Singapore-Changi Airport, the Australian Qantas, also started its low-cost operations with Asia through Jetstar Asia Airways, airline based in Singapore and began its operations on December 13, 2004. For its part, the Air Asia of Malaysia made repeated attempts to establish a low-cost operator in Singapore, but his insistence on using secondary Seletar airport as well as apply for reductions in airport taxes, minimized their chances of obtaining the relevant permits. This setback has blocked the adventure of Air Asia in Singapore. In July 2005, the owners of Jetstar Asia were made with Valuair and merged both companies.

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