Lion Air Feeding Frenzy?

Markit

Generally I'm in favor of more and cheaper flights and I really hope this will not all end in tears but as a normal(ish) consumer I doubt that there is the capacity for all them planes. Taken all together with everything here in East Asia that comes to about 1000 short to mid range planes being delivered over the next few years. Also gotta wonder where Lion gets all their dosh, not being a public company - that's some serious deep pockets! Lion Air Jet Order Stirs Concern Over Glut in Southeast Asia - WSJ.com

hinakos

Maybe the Indonesian air transportation authorities are forcing airlines to retire their older fleets..........thus the need for new orders? The big danger with the budget airlines is they can force the quality airlines out of routes / sectors. Then once all the competition is gone they get to rule those routes. With the same shitty service, late flights, broken websites, lost / broken baggage and long queues. Then they jack the prices back up, and make the service even worse.

Markit

I can only go on European experience with Easy Jet and RyanAir, both of which have not really hurt the established carrier's business but have expanded the ability to fly to many more customers that would not have been able to before. This is probably what will happen here. Ryan Air particularly used small out of the way airports that were begging for traffic and therefore very cheap to land at - this savings was passed on to the customer that was willing to, for instance, land at a "Frankfurt" airport that was actually an hours drive away from Frankfurt... Same with "London" landings at Stanstead airport.