Air ticket wars, meagre profits for Asia's budget carriers

The skies over Asia Pacific are more crowded than ever thanks to the rise of low-cost airlines. Profit margins, however, are razor thin as flyers are tempted with fares for just a few cents, while costs continue to rise. Intense price wars among budget airlines are helping tens of millions of Asian consumers to fly for the first time. One of India's top carriers, meanwhile, has been known to offer promotional base fares equivalent to as low as 2 cents. Cheaper, in some cases, than taking a rickshaw, flying is no longer the preserve of Asia's burgeoning middle and upper classes; it's now in the reach of low-income groups. A potent drug to hook Asian consumers, these ultra-low prices are, however, hurting the bottom line of the region's burgeoning budget airline sector, as it struggles with rising costs in an era of overcapacity. <br/>