Q1). Demand difference of LCC in Asia Pacific, Europe, and North America

The difference of demands among these territories would more clearly be explained in the perspective of macroeconomics instead of through the microeconomics glasses. Micro-economically, there seems to be no difference behind the demand rise of LCC in these territories. Most of the drives are 1). the price sensitivity of consumers, the high growth of travellers, growing economy of upper middle income, and the tendency of decreasing business travels due to technology facilitating business communication inter territories. However, macro-economically, the difference of demands in Asia,
Europe, and North America could be figured out as some variables described in the following 5 forces analysis of LCC airline industry

Closely analysed from the comparison, the difference seems to be located in terms of 1). Supplier, 2).
Substitution power, and 3). Threat of the new entry. In LCC business, cutting cost efficiently without abandoning the industry’s point of parity is vital. One of the ways to do this is the use of low cost/budget airport called secondary airport located not in the main city or alternatively in from the use of budget terminal despite the higher cost. In the airport infrastructure as the supplier of this industry, Asia still does not have as many as such airports and terminals, indicating that the opportunity to reduce the cost is smaller in this case. Besides, in terms of the substitution power, Asia has lower force than the two counterparts. Asia has many countries that are separated by sea, indicating air transportation is the most efficient means compared to vessel. In Europe and US, however, the alternatives are more due to the availability of high speed trains and bus. Another point that may indicate the difference of LCC business demand is the regulation of