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CAPA estimates that low-cost carriers account for 60% of airline seats in Southeast Asia. This figure is just 10% in neighbouring North Asia - well below global performance of 25%.
This gap was the focus of the CAPA LCCs in North Asia Summit, which sought to raise awareness and create conditions conducive for mutually beneficial relationships in North Asian aviation and beyond.
Day 1 of the summit not only provided a fantastic opportunity to speak alongside leading and innovative Japanese LCCs, such as Spring Airlines Japan, Peach and Vanilla Air, but gave valuable insight into their strategies, operations and vision.
One thing is clear - huge growth potential awaits LCCs and hybrids in North Asia. The market has all of the ingredients for LCC growth:
But the region faces unique hurdles:
With over 80 LCC and hybrid carriers partnering with Amadeus today, and 50 LCCs on the recently acquired Navitaire system, we’re working closely with more and more LCC and hybrid carriers to help them secure future growth in a profitable way.
by moving beyond home markets. We’ve seen this with carriers such as Norwegian and Vueling.
via codeshare and interline agreements. 19% of LCC bookings in Amadeus are interline/codeshare today.
as we’ve seen with Air Asia Group.
Why? Because we’re delivering real results for LCCs and hybrids.
What does that mean for LCCs in North Asia? We see opportunities in both expanding internationally, with connections to second tier and regional cities, and leveraging the inbound/cross country growth that we observe between China, Japan, Korea, and Taiwan.
Taking distribution to the next level will help LCCs in North Asia grasp the full potential of the market, and Amadeus is the right partner to help them get there.