Low Cost Carrier Airline Business Opportunities To Soar In The Era Of The COVID-19 Pandemic

Airplane illustration. (Photo: Doc. Antara)

JAKARTA - Aviation observer Alvin Lie estimates that the low cost carrier business will be increasingly active in the pandemic era. He made the assumption based on his observations in this industrial sector.

According to Alvin, the typical passengers who travel by airplane at this time are groups of people who really need flight services only, and tend to reduce additional facilities.

"Because during the pandemic, only people who had real needs would still travel, and even then with a smaller budget than before the pandemic," he told VOI, Thursday, May 27.

Alvin added, there are only a few possibilities for people to carry out mobility by plane with the aim of traveling and require full service from the airline.

"Full service airlines tend to decline at this time because people who go by plane are only for mobility purposes," he said.

Another indication on which to base his opinion is a reduction in the value of costs incurred by a company in carrying out official travel activities for its employees.

"Likewise, travel payments paid by a company or an agency with a smaller budget. This is the reason why there is potential for low cost carriers to develop in the pandemic era and become an attractive choice for prospective passengers, "he explained.

For information, in Indonesia there are a number of airline companies that work on the low cost carrier market segmentation, such as Lion Air, Citilink, Air Asia Indonesia, and Wings Air. Meanwhile, full service airlines are Garuda Indonesia and Batik Air.

Most recently, the Indonesian sky will be enlivened by the plan to fly the Super Air Jet airline, which is oriented towards the low cost carrier market share.

According to VOI's record, the airline, which is reportedly affiliated with the Lion Air Group, is currently working on licensing at the Ministry of Transportation related to administration clearance.