Submitted by: Submitted by yanyanwongwong
Views: 10
Words: 383
Pages: 2
Category: Business and Industry
Date Submitted: 03/10/2016 08:03 AM
Reviewing the macro and industry environment in the Southeast Asian region for the new entry of new budget airlines, first of all, it’s a large emerging market with more than 500 million people lived within three hours of Kuala Lumpur and Bangkok, more than Western Europe’s entire population. The technology is getting advanced, people can communicate without any physical travel like using net-meeting, skype, facetime, etc. but the internet and network speed for most Southeast Asian region is not yet well developed and fast, those people would still prefer meeting their relatives, friends or doing the business face to face by travelling, this large population attracts many new budget airlines to invest into this market.
Secondly, the government at Southeast Asian region is strongly support the development of the airline business, air transport liberalization in the Asia- Pacific region began in the 1990s, and tends to be infectious, once rules start to relax, growth follows. The government has confidence in bringing up the economy and tourism as well as hotel business when the airline industry is booming. These deregulation factor let the company operates the new budget airline easier and willing to enter the market.
Thirdly, the unique geographic territory of Asia with a lot of sea in between makes air travel as an option for leisure and business travelers. Unlike Europe, there are almost no interregional highways and no high-speed international rail, air travel is the only way to develop interconnectivity in Asia. The time for travelling in the air is fast and budget airline becomes attractive due to the lower fares.
Fourthly, the infrastructures like international and domestic airports, public transportation are well constructed at region; the internet coverage is suitable for the customers to purchase the tickets online, which is good for the budget airlines to lower their operating cost.
Lastly, the Malaysian Airlines was not operating well;...