Asia's Budget Airlines Add Long-Haul Flights - Travel News Story - KTVZ Bend
He did not believe that the lack of service and legroom provided by budget airlines would necessarily be a fatal turn-off for customers facing a 10-hour long-haul flight -- as long as the fares were low enough.
"No entertainment? You can solve it by having your own iPad or PSP. Free food on a flag carrier, or buy it yourself on a low-cost carrier? It's not an issue. Most of us will have a bite to eat at the airport and can purchase something extra on board if necessary," he said. "Besides, in economy class on the flag carriers there's not a lot of leg room to begin with."
Cowen added that low-cost carriers could pack up to 25% extra passenger seats in their aircraft, and also had a "big advantage" in not facing the substantial infrastructure costs borne by the legacy carriers, who were being forced to get into the low-cost sector themselves. "They've realized if they don't, they're going to lose the market anyway," he said.
Cannibalization needn't be a problem, according to Cowen. The success of a budget carrier like Jetstar in operating alongside its full-service counterpart Qantas shows how the two brands could collaborate to serve different segments of the market without poaching each other's customers. "All of us don't drive a Mercedes Benz and all of us don't drive a Volkswagen Golf," he said
Hmmm, we will see I guess...