07-Oct-2019 1:20 PM

CAPA Low Cost Long Haul Global Summit: Hamburg, 10/11-Oct-2019

Analysis

Even as the controversy continues over whether low cost long haul LCC operations are sustainable, the fact is that there has been a dramatic expansion in this category over the past few years.

After years of developing short haul, point to point operations, LCCs have reached a point where the sophistication of their business models and new aircraft technologies are aligning with revised passenger expectations to make long haul services a true growth proposition.

Aside from the debate about what is a long haul low cost operation, the central issue is that the high fare, high service proposition of traditional long haul markets is ripe for disruption. As a consequence, airports and destinations are aggressively courting LCCs to develop new direct routes.

Not all is smooth sailing though. As recent bankruptcies in Europe illustrate, the margins in aviation remain slim and today's market disruptors are potentially tomorrow's case studies in what not to do. The clouds of an economic downturn are also looming, and there are those that doubt the viability of the model to weather the storm.

CAPA's Low Cost Long Haul Global Summit to be held in Hamburg on 10/11-Oct-2019, will explore this new frontier of low cost travel as one of the key trends for aviation.

Summary

The low-cost long haul (LCC) market has experienced significant growth in recent years, disrupting traditional high fare, high service long haul markets.
The viability and sustainability of LCC operations are still being debated, with recent bankruptcies in Europe highlighting the slim margins in the aviation industry.
Airports and destinations are actively seeking to attract LCCs to develop new direct routes.
The CAPA Low Cost Long Haul Global Summit in Hamburg will explore the future prospects and challenges of the LCC model.
Key topics to be discussed include financing needs, the impact on trans-Atlantic markets, the development of Middle East LCCs, distribution landscape, and the arrival of new long haul narrowbody aircraft.
The summit will feature industry leaders from LCCs, full-service carriers with LCC units, leasing companies, distribution firms, airports, and tourism associations.

For more information or to register to attend ,visit the CAPA Low Cost Long Haul Global Summit website

Low cost long haul operations under the microscope

The Hamburg CAPA Summit will feature an array of C-level executive speakers and high profile panellists, including leaders from low cost long haul pioneers, start-ups embracing the model, traditional full service carriers with LCC units, leasing companies, distribution firms, airports and tourism associations.

These leaders and executives will tackle an array of critical questions confronting the industry, including:

What are the global prospects for the low cost long haul operating model?
How are the financing needs of low cost long haul carriers to be met?
What impact will low cost long haul have on the key trans-Atlantic market?
What does the development of Middle East low cost long haul mean for Asia and Europe?
What is the distribution landscape for low cost long haul, and how will NDC make its impact?
How will the arrival of the new long haul narrowbody aircraft change the market?
How can airports and LCCs cooperate to create an ideal base for low cost long haul?
What changes will low cost long haul bring to already evolving leisure markets?

Day 1 highlights include:

CAPA'S Low Cost Long Haul Outlook

Presented by CAPA - Centre for Aviation Chairman Emeritus Peter Harbison, this will explore the global prospects for the low cost long haul model.

The outlook will cover key market developments, such as the rapid growth of the model in Europe and Asia, the progressive penetration of the model into the North Atlantic and the impact of the introduction of new long haul capable narrowbodies.

And, in today's near-hysterical debate over the environmental impact of the aviation industry, any discussion of short or long haul operations must be tempered by the potential impact of such issues as flight shaming and government taxes to punish air travellers.

Airline Keynote by Air Arabia CEO Adel Ali

Adel Ali is a Middle East aviation pioneer, having set up Air Arabia in 2003 as the first LCC in the Middle East and North Africa. With prior experience at Gulf Air and British Airways, he has developed Air Arabia into a pan regional airline group, with operations across the UAE, Morocco, Jordan and Egypt.

Air Arabia was among the first carriers to put the A321LR into service, putting two of the type into operation earlier in 2019, with four more to come in the next 12 months. The carrier intends to use the aircraft to not only extend the reach of its fleet and enter new markets, but to use its higher capacity to better serve existing high density routes.

The trans-Atlantic shift: What Impact will Low Cost Long Haul have on this Important Market?

This panel, moderated by aviation consultant John Byerly, will explore the implications of the burgeoning low cost long haul segment on the trans-Atlantic, the world's most profitable aviation market. Panellists will include representatives from both low cost and full service. Airlines from both sides of the Atlantic:

Ivonne Brauburger - Director Sales Programs American Airlines
Tore Østby - EVP Strategic Development Norwegian

How the Middle East LCCs will Change Asia to Europe Long Haul

This panel, moderated by CAPA's own Peter Harbison, will consider how the growth of LCCs in the Middle East could tap into the long haul low costmarket and completely redefine Asia to Europe long haul. Panellists include:

Adel Ali- CEO Air Arabia
Con Korfiatis - CEO flyadeal

Low Cost Long Haul Strategy: Feeding the Network

This panel will cover how low cost long haul operators are establishing partnerships with short haul low cost airlines as a means of expanding their network breadth and supporting their growth aspirations.

It will also address the perspective of full service operators, who have long ceded competitive ground to short haul LCCs and could see history repeating itself as long haul-short haul LCC partnerships gain more momentum and disrupt full service carriers' long haul networks. Panellists include:

Thomas Haagensen - Group Markets Director at easyJet and Managing Director easyJet Europe
Con Korfiatis - CEO flyadeal
Harry Hohmeister - Member of the Executive Board and CCO Network Airlines Lufthansa
Stefan Pichler - CEO Royal Jordanian

How Will Investing in Technology Help Drive LCLH Growth?

Travel technology company Caravelo is pushing the boundaries of innovation in aviation, helping airlines to optimise revenue, expand the reach of their distribution channels and improve the experience of passengers. Caravelo CCO Jonathan Newman will explore a range of questions concerning the interface of technology and the low cost long haul model, including:

What is driving passenger behaviours?
What tools are available to airlines which could influence traveller behaviours?
What does the low cost long haul traveller look for? How is this different from short haul LCCs and full service carriers?

Day 2 highlights include:

The Rise and Rise of Low Cost Long Haul - Narrowbody

Low cost long haul operations are rapidly adapting to the introduction of new, larger narrowbody equipment, such as the Boeing 737 MAX and new variations of the A321neo. With narrowbodies now capable of operating routes of seven hours or more, this panel will examine questions about:

what opportunities these aircraft open up to LCCs;
how LCCs will manage split long haul fleets of widebody and narrowbody aircraft;
how legacy airlines are utilising the new aircraft equipment to defend markets; and
which markets are prime targets for these aircraft to continue the low cost long haul expansion?

What Do Airports and LCCs Need From Each Other?

Moderated by ASM Senior VP Consulting & Development Nigel Mayes, this panel will examine the interplay of LCCs and airports in the route making decision process. The panel will address questions such as:

How do needs vary between full service and low cost airlines?
How can airports help airlines develop a business case for establishing or expanding a new route?
What do airports need to do to enable the smooth transfer of the important self connecting passenger market?
What constitutes the ideal base for a low cost long haul airline?
How do airports and airlines view the passenger journey and what cooperation is needed between them?

Panelists include:

Jasper Spruit - VP Traffic Development Avinor Group
Joergen Kearsley - General Manager Aviation Marketing Hamburg Airport
Slavomir Mucha - Airline Partnerships Manager Kiwi.com
Ken O'Toole - CEO Stansted Airport

For more information on the full agenda and speaker line up or to register to attend, visit the CAPA Low Cost Long Haul Global Summit website