CAPA reaches host agreement with Airports of Thailand for LCC Airports Congress in Bangkok

Press Release

CAPA is delighted to announce a host partnership with Airports of Thailand (AOT) for the landmark first annual LCC Airports Congress, in Bangkok on 15 September 2015. LCCs have had a vital role to play in the development of travel and tourism across the Asia Pacific region over the past decade. Airports, governments and key industry stakeholders are showing an increasing understanding the distinct needs and challenges of the LCC sector. This first annual LCC Airports Congress aims to further this understanding and drive our industry forward.

LCCs now account for more than one in four airline seats worldwide, whereas within Southeast Asia close to three in every five seats are now produced by LCCs. Low cost carriers (LCCs) now account for some 36% of air capacity in Bangkok, according to the latest figures from the AOT.

  • LCCs account for more than one in four airline seats worldwide and close to three in every five seats in Southeast Asia.
  • There is often a mismatch between airport infrastructure and the needs of LCCs.
  • LCCs have distinct operational, technical, and passenger facilitation requirements compared to traditional airlines.
  • The LCC Airports Congress aims to bridge the gaps in understanding between stakeholders and drive the industry forward.
  • The agenda includes discussions on ASEAN open skies, airport infrastructure, smart airports, facilities for LCC operations, pricing models, and lessons learned from other markets.
  • CAPA will release a global study of Low Cost Airports and Terminals.

In virtually every region worldwide, LCCs are a key growth engine of the global airline business.

But the airports they serve were often built in a very different era. As a result, there is commonly a mismatch between an airport's infrastructure, technology and services and the contemporary needs of LCCs.

Airport managers and government regulators are also dealing with a totally new airline business model. LCCs are very different from traditional airlines and have quite distinct operational, technical and passenger facilitation requirements.

This one-day Summit aims to help bridge the gaps in awareness and understanding that exists between the stakeholders - to help create the conditions for a win-win for Asian aviation, travel and tourism.

Over the coming weeks, CAPA will be inviting many airline and airport chiefs to Bangkok to participate in the exciting agenda planned for the event on 15 September.

The event will showcase many leading examples of airport management across the region, and of course the executives of the LCCs themselves, as well as key technology and airport services partners and government regulators.

More information, including sponsorship and registration details, may be found here.

A vital agenda for LCCs, airports, their investors and suppliers

On 15 September, the Summit will open with a Keynote Address from AOT, to be followed by an overview and analysis by CAPA of Asia's burgeoning LCC sector. This will introduce who the key players are, which markets they serve, how big will they get, ownership details, which ones are serving long-haul markets, and the overall outlook for the LCC sector.

This will be followed by an in-depth panel discussion and Keynote Address on ASEAN open skies, a the cornerstone of the next wave of LCC expansion. It will answer the questions:

  • Will ASEAN open skies unleash the expected next phase of growth, or will the agenda be delayed?
  • What is the status of ASEAN economic integration?
  • Will protectionism rear its head in Asia, reversing the gains of the past decade?
  • Where to now for the Single Market?

The agenda then turns to a discussion on the 'Asian Aviation infrastructure challenge': Where will the money come from to fund airport development? Experts in their field will examine what type of facilities should be built and where, when will it occur and and who will finance it.

The next session focuses on the 'Smart Airport', that is the technology and services that are driving better LCC passenger outcomes. We will be inviting key stakeholders in the airport passenger experience to share their views on where airports are excelling - and where they're not - at creating a seamless passenger experience for bread-and-butter LCC clientele.

After lunch, we turn to the 'Secrets for Success' that airports need to win the hearts and minds of LCC executives. That is, we look at the key ingredients, from an airline's perspective, of the facilities and services that are ideal for LCC operations.

The Congress will then look at the dynamics of airport and airline pricing models. Understanding the key drivers of airport and airline pricing can go a long way to better negotiations and fairer outcomes. The panel will debate the dynamics of airport pricing models on LCCs' load factors and active/yield-passive pricing strategies, and how these might complement, instead of contradict, each other.

Finally the Summit will close with a panel on lessons learned in other markets, and what those experiences can offer Asia. There will be guests from Europe and North America to provide insights into market evolution and what has worked well in the relationships between LCCs and other industry stakeholders.

More information, including sponsorship and registration details, may be found here.

CAPA will shortly release an in-depth global study of Low Cost Airports and Terminals at www.centreforaviation.com