New airline models – the subject of our cover story this issue – are seductive. They spell innovation and are a challenge to traditional carriers, which may benefit travellers.

More of them are appearing in Asia-Pacific skies. Without doubt, the aviation sector, in South-east Asia particularly, is becoming interesting, with Singapore, Thailand and Indonesia all seeing the entry of new airline parvenus, while Malaysia already has one, AirAsia. It will not be long before North and South Asia will also see such players; markets such as China and India seem well-suited for new models such as no-frills airlines, if the conditions are ripe. In Australia, Qantas Airways has buckled under the pressure of Virgin Blue and will operate a no-frills carrier.

Of the three new airline models (see page 7), no-frills carriers indeed are the most exciting even though their relevance is far more for leisure travel than corporate travel. The tradeoffs for low fares are rigid schedules and connections, self-service ticketing, no inflight service and no frequent flyer miles – a nightmare for road warriors.

For corporate travel planners, the fact that no-frills carriers are not usually available on the global distribution systems render them useless for booking a ticket for clients which, in turn, makes T&E expense tracking incomplete.

But do not rule out the relevance of these new models in the corporate travel world in Asia eventually. In the US, the National Business Travel Association reported a surge in demand for low-fare carriers – and more private and flexible alternatives such as corporate charters, shuttles and leased or company-owned aircraft – in 2001, not long after they entered the skies.

In Asia, once the various new airline models gain acceptance, it should be no different. In fact, savvy players such as AirAsia and Virgin Blue are increasingly turning their attention to business travel.

Savvy planners who want more cost-effective solutions will listen.

Raini Hamdi
Editor