Will Budget Airlines Survive the Pandemic

Will Budget Airlines Survive

It seems like they’ve been around forever, but budget airlines in Asia have existed for less than twenty years. Air Asia, the most successful budget carrier on the continent, was launched in 1993, and Nok Air, Tiger Air, and others soon jumped on the bandwagon. 

Many people in the region had never flown before or flown only when traveling distances too logistically difficult to reach by car or train. Existing airfares at the time were simply too costly to consider when visiting family and friends that could be reached by cheaper means. 

But these pioneering low-cost carriers ushered in an era where regional travel exploded in popularity and added to the tourism economies of many countries in the region. 

Danger to the New Ease of Travel in Asia

Suddenly, it made no sense to drive from Bangkok to Phuket. It took too long and would cost you more in fuel and expenses than you would spend on flying. 

Many people in the region increased their air travel on holidays. They grew adventurous by the low rates and explored more exotic destinations as a refreshing change from visiting the same old resorts again and again. Getting away to a coastal resort for a long weekend was no longer cost-prohibitive. 

People became used to the new low air travel prices and adjusted their lifestyles accordingly. But air travelers may have to revert to the old prices again. Budget airlines have already had to weather the pandemic for up to two years. Some of them are struggling to stay afloat. 

If enough of them go bankrupt, the laws of supply and demand will take over, and airfares will rise to their old levels again. You can do your part by choosing a low-cost airline every time you have to fly, or you’re going on a holiday. Let’s help keep budget airlines in business so more people can enjoy flying and regional economies benefit.