(Photo from Wikipedia by Adrian Pingstone)

The long-haul, low-cost carrier concept is now firmly established, and it’s only a matter of time before such an operation sets up shop in Phuket, bringing with it the associated job and tourism benefits.

So far, the only long-haul LCC route out of the region is operated by Air Asia, flying from Kuala Lumpur to London. However Jetstar, the rapidly growing LCC offshoot of Qantas, announced in May that it will soon start long-haul flights out of Singapore to Australian, North Asian and European destinations. They already fly direct to Phuket from Australia. This all clearly emphasises the increasing regional impact of the business dynamic.

As a premier tourist destination, Phuket will eventually appear on the long-haul LCC radar of in-bound European carriers. Phuket only has to wait for Air Asia to establish its second hub here, before this happens. At present, they haven’t indicated when they’ll start such services, but they’re on the drawing board.

Although Air Asia’s performance to date has been impressive, the history of long-haul LCCs in Asia is not good. Oasis Airlines, operating out of Hong Kong, went into liquidation after only two years; they were partly a victim of high oil prices, but their main mistake was to offer excellent service on full-size intercontinental aircraft, with severely discounted fares. For the long-haul low-cost model to be profitable, operators must cram as many people as possible into small aircraft like the Boeing 737 and the Airbus 320.

However, stretched versions of these planes are now increasingly being used over longer distances. In Europe in 1985, the average flight distance for an LCC was around 400 kilometres. By 2007 it was closer to 1000 kilometres. In the U.S. where Southwest Airlines pioneered the low-cost model in the 1970s, the average flight distance went from 600 kilometres to around 1200 kilometres, over the same period.

If you opt for a budget flight, what are you likely to have to forego? Here’s a selection: hot towel, alcoholic beverages, tea and coffee, a cooked meal, meal trays, cutlery and napkin, free newspaper, generous (a relative term) leg room, pre-flight lounge facilities and a frequent flyer programme.

However, the lines between LCCs and full service models are becoming blurred. For example, some ‘legacy’ (i.e. traditional) carriers are now curtailing in-flight services. They’ve reduced their seat pitch (the space between rows of seats), introduced baggage services charges, eliminated free food, and reduced the number of aircraft types in their fleets to facilitate maintenance. Conversely, some LCCs are offering frequent flyer schemes and enhancing their cabin service offerings.

The Malaysian LCC Firefly and Thai Air Asia, both offer the following services that were not part of the original business model: self check-in, pre-booked meals, supersized luggage, advance seat selection, 20kg checked baggage allowance, complimentary in-flight refreshments and light snacks. Most other LCCs, however, still charge for food served on board.

Initially LCCs did not offer in-flight entertainment (IFE), because of the cost (and weight of the equipment) and because it was not deemed necessary for short-haul flights, but as the sector lengths flown increased, this is changing.

The longer-haul routes have also forced carriers to introduce other services and facilities not previously planned for LCCs, such as ovens to heat food; a seat pitch which is bigger than the standard 29-31 inches and on-board GSM and internet connectivity services. The last-named are normally obtainable on a chargeable basis. OnAir was a pioneer in offering such services, but they’re becoming increasingly common as instant connectability seems to be an indispensible part of our lives.

So it seems that the LCC concept is set to become a standard business format for aviation services; particularly those targetting the tourist market. Let’s look at the numbers. In 2006, in Europe and the United States combined, there were around 7000 flights a week. Today this statistic has risen to 58,000 per week.

The inexorable growth of the LCC and its increasing impact on long-haul routes will inevitably become a part of Phuket Airport’s future operations. It’s just a matter of waiting for the economics to become optimal. LCCs first really took off (do pardon the pun) as a business model in Europe, with Ireland’s Ryanair and UK’s EasyJet. The doomsayers predicted it would never work in Asia because of the distances involved, the lack of secondary airports and the limited profitability of the regional fare structure. They were wrong.

Alastair Carthew is a writer, broadcaster and public relations adviser living on Phuket.
Tel: +66 (0)81 750 0448 (mobile), +66 (0)76 317929 (office)
Email: alastaircarthew@gmail.com