The efficiency performance of full-service carriers in East and Southeast Asia amid increasing air transport liberalization and LCC presence

Abstract

The rapid expansion of low-cost carriers (LCCs) in East and Southeast Asia has brought fierce competition to full-service carriers (FSCs). Competition in the air transport market is at an all-time high, thanks to the ongoing liberalization in air transport in the last several decades. This chapter assesses the efficiency performance of major FSCs in this region. It provides indicative evidence of the close association between FSCs' efficiency, and air transport liberalization and LCCs penetration. Singapore Airlines and Asiana are identified as the star companies in this region for their ability to achieve higher efficiency and, at the same time, report positive growth in productivity.