Budget airlines around the world are expanding their routes and fleets in the recession, even as larger carriers are cutting back amid sharp losses. The drop in business travel has hammered full-service airlines, while no-frills carriers have picked up more cost-conscious passengers. "Full-service airlines have a bit of conundrum on their hands," says one Australia-based aviation consultant. "We think low-cost carriers will become so much more entrenched in airports and corporate travel that it will be difficult for them to claw their business back" when the economy turns around.
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