Asia's Budget Airline Invasion

Cathay Pacific Airways is preparing for war. No, it’s not a battle over first-class lounges or lie-flat beds. Such skirmishes over creature comforts to woo business travelers have long consumed high-service Asian airlines such as Cathay. This time the Hong Kong-based airline faces a potentially more daunting challenge: budget carriers. As incomes rise among tens of millions of consumers across Asia, air travel is becoming a reality for the masses. That’s given rise to a breed of low-fare rivals with names such as Scoot, Peach Aviation, Jetstar Airways, and AirAsia, all competing wing-to-wing against traditional airlines.