The unpredictable impact of ULCCs in the US as they move aggressively to make their mark

The Ultra Low Cost Carrier - ULCC - business model is well beyond its infancy in the US, but passengers are still bemused by the concept of a totally unbundled air travel experience. Some ultra low-cost airlines acknowledge that perhaps one of the greatest challenges that lies ahead is educating customers about their different product offering. CAPA's recent Americas Aviation Summit in Las Vegas hosted a discussion between some of the leading proponents.

At the same time there is one school of thought that the three large US airlines - American, Delta and United - could be ceding domestic travellers to the lower cost airlines. However, recent moves taken by those airlines show that they may not be willing to allow ULCCs to have total control over the cost-conscious air traveller segment.

As all US airlines settle firmly into their respective business models, the reach of ULCCs in the present market place is difficult to measure. But one certainty is that those airlines remain ambitious, and plan to increase their stature in the mature US market. Many airports also see opportunities.