AAPA notes 'blurring' between FSCs and LCCs

Association of Asia Pacific Airlines (AAPA) director general Andrew Herdman, speaking at the CAPA Asia Aviation Summit, said (23-Nov-2015) with the "convergence and hybridisation of [airline] models, it's no longer helpful to think in terms of full service and low cost because they're both blurring." Mr Herdman said: "This business is about connectivity so LCCs are learning the hard way to integrate, and FSCs are learning that you have to have feed." Mr Herdman provided examples of AirAsia becoming a network carrier with its regional affiliates, while Scoot has learnt it needs "an integrated short-haul feed." Mr Herdman added: "The business strategies are still challenging," and that models are no longer important: "People are extracting profits even with a high cost base and some have a low cost base with fares to match and are still struggling, like much of the AirAsia Group… There are no distinct market segments, everything overlaps."