Air Asia is expanding its operation. If the new jv could bring ANA's legendary in flight services together with Air Asia's affordable price tag, it could be a concern for other airline companies. Everyone who had experienced ANA airline inflight services would agree that even in the economy class, they will treat you as if you are flying in business class. I did not expect much since that's normally what you get flying in economy class (EC). However since Ive mentally prepared to fly in EC, un-expecting that kind of services to come my way, I might exaggerate the story a little. The stewardess would attend to you at short intervals, which to an extent felt 'uncomfortable'. But this is not in any way a bad thing.
The only problem that AirAsia might face in their quest of expansion is how to convince people to chose 'no frills' for longer flight. Its common to see people traveling short distance on budget airlines since the small seating space and the absence of food is tolerated with the reasonable distance and ticket price. However the idea of a longer flight might not be suitable at the time being. Ive met people who travel to destinations which took a 20+ hours flight. All of them agree on one thing; they are willing to pay more to fly at least in the business class. However this view is shared by people 35 years and above and has the means to purchase tickets at a higher price.
AirAsia have ventured into the long haul budget territory with AirAsia X. However to me, its more like a medium haul since the distance of the flight is from Kuala Lumpur to London and Paris. This is still a reasonable distance to travel (for me) without the need of a seat transformable into a semi-bed or bed.
To be profitable while offering cheap flights on longer distances is no easy task. However demand from a developing region of the world would ensure that a no frills model would have an abundance of customer. Moreover, there is definitely a massive amount of middle and low income people in this world. The filthy rich would have their own private planes anyways.
Earlier this year, ANA launched Peach Aviation, a short-haul low-cost carrier based in Osaka. So, this jv would definitely benefit both parties. One which has mastered the no frills model while the other is among the very best in services.
Others should be worried!
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