How FSCs can regain short haul share from LCCs Part 2: high level. CAPA Airlines in Transition.

Part 1 of the report on the ways full service airlines can regain short haul market share from LCCs considered more detailed issues at the 'coal face' of the business. These included pricing strategy, ancillary revenues, the approach to cost reduction, changes to the product and service and, crucially, how to gain the support of employees.

This second part looks at three higher-level issues, namely distribution strategy, establishing new business models and the use of partnerships. Both parts of the report are based on themes arising from a panel discussion under the chairmanship of Professor Rigas Doganis at the CAPA Airlines in Transition conference in Dublin on 10 and 11-Mar-2016, and the related votes taken on these topics by delegates.

Since CAPA's first Airlines in Transition event four years ago, there has been considerable movement in the business models of both LCCs and FSCs, mostly towards each other. In spite of the emergence of a hybrid model, LCCs still have a unit cost advantage and FSCs still face a competitive challenge. However, LCC seat share has levelled off since 2013.