Impact Of The Aviation Industry On The Asian Pacific Markets

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Businesses play an important role in economic growth — in different countries. When the business industry performs well, a reflection of the good performance is replicated on the economy. The aviation industry has contributed so much in economic growth. For this reason, Asian countries have been on the forefront in embracing the low-cost carrier (LCC) operations in their countries. The introduction of LCC in the aviation industry, as well as the formulation of joint ventures among Asian countries has affected the economic growth. This growth has had impacts on the overall economy of the Asian countries. This paper analyses economic growth in Asian countries, focusing on LCC’s contribution towards the aviation industry. In Asia, LCCs…show more content…
The airline companies in the Asian region have continued to provide remarkable quality services and products of higher standards. Thus, they have experienced rapid growth in young fleets, with increasing demand for the services, as well as the traffic growth; making the Asian airlines to be profitable — compared to the other regions. One of the outstanding innovations entails lower cost carriers (LCC). The innovation is a cross-border venture that was meant to overcome restrictions of bilateral agreements (David, 2010). The innovation gave rise to successful subsidiary airline companies; which were low-cost and, allowed the use of multiple brands. For example, Qantas has been success among the subsidiary airline companies (Yuri, 2013). The subsidiary companies have been working in close ties and incorporated innovative low-cost operations — that has resulted to sustainability in the current Asian economy. The Association of South East Asian Nations (ASEAN) and Single Aviation Markets (SAM) that liberalize multilateral company operations also link LCCs closely with crucial measures that are taken. The formation of ASEAN and SAM has been influential in creating agreements between bilateral states, implying further collaborations in the airlines. Furthermore, ASEAN and SAM have led to projections of further economic growth; expected to be
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