Budget airlines booming in recession

Some winners of the worldwide recession are the budget airlines from all over the globe, who are doing well as travellers are looking for more cost effective ways of getting to their destination.

Low-cost airlines like Ryanair, AirAsia and Easyjet are coping well and are actually introducing new routes and buying more planes as their larger competitors struggle on making losses. Some of the big boys are reporting losses for the first time in many years despite the fact that they have cut routes, staff and overheads. One airline is even talking of losing their business and first class cabins in favour of more economy seating.

“Full-service airlines have a bit of conundrum on their hands. We think low-cost carriers will become so much more entrenched in airports and corporate travel that it will be difficult for them to claw their business back when the economy recovers,” said Derek Sadubin of the Center of Asia Pacific Aviation.

AirAsia posted a record $56.4 million profit for the first quarter this year, which was up 26 per cent on the same time last year, their passenger numbers also grew massively by around 21 per cent. They have already ordered new planes and made their first flight into Europe this year and is now eyeing up the US market with possible no frill flights.

Thanks to www.latimes.com for the above quote, for more details on this story please visit their website.