ABSTRACT
This chapter examines the development and structures of selected low-cost carriers (LCCs) in the Asia-Pacific region. Countries in South East Asia were quick to recognize the potential commercial benefits from some form of deregulation and adoption of the LCC model, a genuine product of the market deregulation process that started from their North American and European counterparts. The Asia-Pacific Economic Cooperation (APEC) member countries are watching with interest the development of LCCs in the Asia-Pacific region. Liberalization of air services started in the USA with the Airline Deregulation Act of 1978, which pursued an active policy of liberalization through the so-called 'open skies' agreement at an international level, followed by the European Union (EU) in the 1980s and it is now being adopted in the Asia-Pacific region. Multilateralism took over from bilateralism as the deregulation process progressed through the Asia-Pacific region.
