Business and functional level strategies have historically defined the business model for Low Cost Carriers (LCC). This basic model is now being augmented as corporate and global strategies proliferate and increase in importance. These higher level strategies which include the emergence of the Long Haul Low Cost Carriers (LHLCC) will define the future of the LCC segment and impact the wider airline industry.
It is widely accepted that global air transport is becoming centered in the Asia Pacific region. Within this region China has the potential to develop into a mega-market surpassing the rest of the region and the world. The air transport industry of China is reaching strategic importance at regional and global levels.
The big three (B3) airlines of China are pursuing expansion programs. Air China, China Eastern, China Southern and some of the smaller domestic airlines have the potential to become major global players.