The global jet-fuel crunch is hitting Asia’s low-cost airlines much harder than their full-service counterparts. Governments should be preparing financial or operational support to avoid further flight cancellations during the busy summer travel season — as well as outright shutdowns like the collapse of America’s Spirit Airlines.Discount carriers like Malaysia’s AirAsia X, Indonesia’s PT Lion Mentari Airlines and Cebu Air of the Philippines are already bearing the brunt of the energy shock. Policymakers must consider targeted measures in the form of loans, grants or fuel price relief.The packages should differ by country and reflect conditions on the ground, but pandemic-era policies offer a sound starting point. The advantage this time around is that there is no shortage of demand. In fact, Asia is expected to hold onto the top position in terms of traffic growth this year, according to the International Air Transport Association, a trade association.
Asian budget carriers need help to avoid Spirit’s fate
The global jet-fuel crunch is hitting Asia’s low-cost airlines much harder than their full-service counterparts. Governments should be preparing financial or operational support to avoid further flight cancellations during the busy summer travel season — as well as outright shutdowns like the collap
This article is aggregated from Japan Times. DayOff News presents the headline and excerpt to help you discover global news. Click below to read the complete article on the original publisher's website.
Read Full Article at → Japan Times