Low-cost carriers like AirAsia X versus full-service carriers like SIA

SINGAPORE: AirAsia Bhd and Qantas Airways Ltd are challenging Singapore Airlines Ltd and other full-service carriers with a low-fare, long-haul business model that has previously failed.

Qantas’s Jetstar unit will add budget long-haul flights from Singapore later this year. The carrier cuts costs by renting movies to passengers and using lightweight equipment to pare fuel usage. AirAsia X, which flew more than 1 million passengers in 2009, squeezes 35% more seats onto its planes than full-service carriers to pare expenses.