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Why Asian airlines see huge profits and American airlines continue to lose money

As a travel writer, I spend a lot of my time on airplanes. That I now choose to book on mainly Asian airlines is a testament not only to the superb service they offer, but to how dismal the service is on most American airlines. While many American airlines are desperately trying to survive and, in some cases declaring bankruptcy, (American Airlines, anyone?), Asian airlines are thriving. But why?

Low-cost fares, superb customer service, no Gestapo tactics at security in Asian airports, and high on-time arrival rates are just a few reasons why Asian airlines, and Asian airports for that matter, are kicking America's butt. Chances are, they'll continue to do so. Add onto that the daily harassment of passengers at American airports by the Transportation Security Administration (TSA), and it's no wonder fewer Americans are flying on American airlines than ever before.

Asian airlines cover everything from no frills to ultra premium services, and do both very well. They also treat their passengers as valued customers, even if you're just booking a $99 flight from Bangkok to Kuala Lumpur, and that's something most American airlines just can't seem to manage. Both low-cost and ultra premium are pushing up Asian airlines' profits so high, they're now the world's most profitable airline sector.

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Last year, Asian airlines made 50 percent of  the global airline industry's profit while only carrying 25 percent of the world's passengers. Industry analysts also predict a 9 percent growth in Asian passenger numbers in the next few years -- a huge amount compared to the slumping figures in America.(see BBC video "Why is business soaring for Asian airlines?" for more information).

Low-cost carriers in Asia only represent 25 percent of the entire Asian passenger traffic. This means low-cost carriers are a huge segment of the market for growth, a growth that's likely to run into double digits if the income of Asians continues to rise as it is.

So, if you think the days of Asian airlines dominating the market are soon going to come to a close, think again.

Airlines like Air Asia, Air AsiaX (long-haul flights), Garuda, Tiger Airways and Scoot offer a huge variety of routes, convenient flight times, excellent customer service, online booking and, of course, extremely cheap air fares. Add on the fact that you'll get less hassle on any Asian airline, than you will on an American airline, many of whom have become the Gestapo of the clouds, and expect Asian airlines' profits to grow and grow.

Meanwhile, I'm researching flights from Malaysia to London and, you can guarantee, I'll be booking a seat on Air Asia, Air Malaysia or China Airlines. In fact, so sure am I that I'll get the best price and best service, I no longer even bother checking American airlines' prices. Much of the rest of the world does the same.

, Asia Travel Examiner

Cassandra James went to live in Thailand for a year, six years ago, and never left. She writes about Thai travel, culture, and, of course, the food (yum!). She also travels around south east Asia to find the cool, bizarre and unique. She can be reached at bangkokbint@yahoo.com.

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