CAPA's Airlines in Transition: LCCs - remaining pure in an impure world

The "pure" LCC model was all about focusing on costs - and nothing else. This allowed its stern adherents to charge significantly lower fares than incumbent airlines and to make dramatic gains in market share. In turn, FSCs adopted elements of the LCC model, particularly on short haul, and LCCs started to add features on top of the basic 'no-frills' offer.

What are the implications for the cost base of diluting the purity of focus? Does the additional yield derived from providing additional services justify increasing the cost base? Should LCCs grow their links with FSCs and even provide them with feed?

This report, our third based on themes raised at CAPA's Airlines in Transition 2014 conference in Dublin in Apr-2014, touches on these issues as discussed by a panel of experienced industry experts. Moderated by Professor Rigas Doganis, the panel included Conor McCarthy (Executive Chairman of Dublin Aerospace and Co-founder of AirAsia), Jim Young (President of Canada Jetlines), Andrew Pyne (Senior Partner, Concuros), Tony Davis (COO, Irelandia Aviation) and Alex Cruz (CEO of Vueling).