Low Cost Carriers Collaborating More As Regional Competition Heats Up, Abacus Study Reveals

JeetSawhney-ABACUS_MD, Abacus India

• 42% cite competition from other Low Cost Carriers (LCC) as a ‘significant challenge’ 
• 54% integrated with a Global Distribution System (GDS), with more intending to soon
• 37% looking to partner with other airlines, with a third considering an alliance
• 26% may merge or acquire a smaller LCC

NEW DELHI, April 1st, 2014: Low cost carriers (LCC) across Asia Pacific are deploying a more collaborative strategy as competition intensifies, according to a new Abacus LCC/Hybrid Study released today. The region’s travel technology leader has shared analysis from in-depth surveys with over 20 major budget brands, explaining in part their success in averaging almost three times the growth trajectories of their full service counterparts – and their plans for the future.


While they all intend to leverage the advantages they enjoy with lower cost bases, better aircraft utilization and what they consider superior technology to gain share, many have become concerned about cannibalization of the sector at the budget end.

Of those surveyed, four in ten (42%) cite competition from other LCCs as a ‘significant challenge,’ just behind the serious concern of fuel costs. That compares to only 4% who see full service brands as a direct threat.