How Asia-Pacific Low-Cost Carriers Lead the Way in Adopting Widebodies for Medium and Long Haul Routes

The trend of low-cost carriers (LCCs) embracing widebodies for medium and long haul flights is gaining momentum in the Asia-Pacific region, setting it apart from Europe and North America, where this model has experienced a decline in recent years. Even before the COVID-19 pandemic, the LCC widebody model was most established in Asia-Pacific, and now the region is further solidifying its position as more Asian LCCs venture into the widebody market or expand their existing fleets.

The introduction of widebodies by LCCs is driven by various factors, despite their historical reliance on single narrowbody aircraft types. Widebodies offer increased range and capacity, as well as enhanced cargo capabilities. While commonly known as “long haul low cost,” most LCCs in the Asia-Pacific region utilize their widebodies primarily for medium haul rather than true long haul flights. Additionally, new extended-range narrowbodies are enabling LCCs to expand their networks with smaller aircraft.

Here are a few key opservations:

• Asia-Pacific LCC widebody fleet has recovered to pre-pandemic levels.
• European and American LCC widebody fleets have experienced significant reductions.
• VietJet rapidly builds up its fleet of A330s for Australian routes.
• Japan Airlines (JAL) launches ZipAir during the pandemic, operating 787s on transpacific routes.
• All Nippon Airways (ANA) plans to launch widebody subsidiary AirJapan in early 2024.
• Asia-Pacific LCCs lead in widebody operations and have shown faster recovery compared to other regions.

According to data from CAPA – Centre for Aviation and OAG, LCCs worldwide are currently operating 133 widebody aircraft as of July 1, 2023, down from 176 pre-COVID-19. The Asia-Pacific region stands out as the leading market for LCC widebody operations, with its fleet size bouncing back to 88 from a low during the COVID-19 crisis.

In contrast, LCCs in the Americas are operating only 17 widebodies, down from 43 pre-pandemic, while European LCCs operate 19, a significant reduction from 44 in February 2020. However, in the Asia-Pacific, LCCs have been able to maintain their widebody presence and even expand their fleets.

VietJet is among the prominent Asian LCCs that have successfully integrated widebodies into their operations. Although it primarily operated Airbus A320-family narrowbodies, the airline decided to incorporate widebodies into its fleet, with seven Airbus A330-300s now in operation. These A330s enabled VietJet to launch new routes from Ho Chi Minh City to Australian cities, gaining a considerable market share on Vietnam-Australia routes.

South Korea’s T’Way also ventured into the widebody market during the COVID-19 pandemic, introducing three A330-300s on long haul routes from Seoul to Sydney, in addition to other destinations.

Japan Airlines (JAL) took a bold step during the pandemic, launching ZipAir as its widebody LCC subsidiary. ZipAir operates with Boeing 787-8s on medium haul Asian and long haul transpacific routes, including the recently added route to San Francisco.

Looking ahead, All Nippon Airways (ANA) plans to introduce its AirJapan widebody subsidiary in February 2024. AirJapan, classified as an LCC, will operate 787-8s and intends to serve Southeast Asian routes initially, expanding to other Asian destinations later.

The concept of LCCs operating widebodies has gained significant traction in the Asia-Pacific region, particularly since the COVID-19 pandemic. While some airlines, like AirAsia X, downsized their widebody fleets during the pandemic, others have been steadily adding more aircraft.

The Asia-Pacific LCCs that were already operating widebodies before the pandemic, along with one major LCC in India keen on joining them. Additionally, the trend of LCCs adopting longer-range narrowbodies will be explored, offering a new set of options for optimizing network strategies. As LCCs continue to push into longer-range routes, they face the challenge of maintaining their cost advantages while addressing differences in passenger experience compared to full-service carriers.