Budget or bust

SMU Assistant Professor of Strategic Management (Education) Terence Fan commented on the soaring popularity of budget airlines even with limited services. He said: “Their lower prices attract those who want to save money while travelling, and those who would otherwise not travel at all.” Assistant Prof Fan, who has studied the growth of budget airlines in Asia, explained: “The popularity of budget airlines looks set to grow further as there’s still some potential in the market for short-haul flights – many Asian countries are located quite close together.” But in the long-haul market, budget airlines might grow more slowly. “The people who travel those distances can usually afford to pay more for full-service carriers,” he said.

Source
The New Paper