CAPA Global LCC Summit

Singapore, Singapore
1-2 Mar 2018

Day 1: 1 March 2018

08:00 Registration
09:00 Chairperson's Welcome
09:05 Overview of LCC development in global markets
CAPA - Centre for Aviation, Executive Chairman, Peter Harbison [Download Presentation]
09:25 Panel: The LCC Air Finance Outlook: The perspectives OF financiers, airlines and lessor CEOs
LCCs, as the newer players in the industry, are competing to meet future growth needs. They can scarcely afford to stand still if they are to assert themselves in the long term – especially as newer models enter. The need to plan for fleet expansion and replacement, as well as making decisions on leasing and purchasing can make for difficult decisions. This often means that if they are to be seen as serious long term competitors, they need to make aggressive decisions on new aircraft orders. In this respect (and many others) they are very different from the traditional established airlines.
  • Finding the funding – debt and equity – to support LCC expansion. Is the money there?
  • What special features need to be considered in funding new and established LCCs?
  • Which funding models are most attractive to LCCS?
  • What roles have the OEMs played in LCC expansion?
  • Are markets large enough to support all the new orders?

Moderator: KornFerry, Senior Client Partner, Torbjorn Karlsson

  • Allegiant, VP Fleet Planning & Corporate Finance, Robert Neal
  • Astro Aircraft Leasing, CEO, Johnny Lau
  • Boeing Commercial Aircraft, Executive Director, Market Analysis, Wendy Sowers
  • Bombardier Commercial Aircraft, Head of Marketing Asia Pacific, Ross McKeand
  • DVB Bank SE, Senior VP Aviation Research, Albert Muntane Casanova
10:25 CAPA's Latest Products
CAPA - Centre for Aviation,
Director South Asia, Binit Somaia [Download Presentation]
10:30 Coffee Break & Networking
11:00 Case Study: Allegiant Air - Innovation through diversification
Allegiant has always positioned itself differently in the airline/travel space. As an integrated travel provider, the company typically uses older aircraft to operate a schedule of less than daily flights from small to mid size US cities to large tourist destinations, including Las Vegas and Orlando. The carrier also generates ancillary income from selling hotel rooms, vacation packages and rental cars – and in its latest move, the ULCC plans to build a resort in southwest Florida. This presentation will provide an overview of Allegiant’s unique business model, and the carrier’s plans for restoring cost competitiveness as it forges a new revenue stream and transitions to an all Airbus fleet.

Allegiant, VP Fleet Planning & Corporate Finance, Robert Neal [Download Presentation]

11:30 Panel: Are there any pure LCCs left?
As LCCs move up the yield curve, even as far as seeking corporate travel contracts, they move further away from the bare bones low cost operation and begin to resemble their FSC counterparts. Many now offer network connectivity, targeting business travellers and going long haul, adding to cost and complexity. Meanwhile FSCs are taking on many of the characteristics of LCCs, notably through product unbundling and discount pricing strategies, especially on short to medium haul routes, thus increasingly challenging the hybrid LCCs.
  • What characterises a “pure” LCC?
    • Aircraft type and configuration
    • Aircraft and crew utilisation
    • Pricing and distribution
  • How do experiences of the LCC business model vary in emerging vs established markets?
  • Can traditional “ultra” low cost short haul point to point operations still guarantee success, where full service airlines are reducing costs and maintaining high yields?
  • Is it inevitable that LCCs move upstream as they become older and as new competition emerges?

Moderator: CAPA - Centre for Aviation, Chief Analyst, Brendan Sobie

  • Embraer, VP Asia Pacific, Cesar Pereira
  • flyadeal, CEO, Con Korfiatis
  • HK Express, Commercial Director, Jonathan Hutt
12:15 Panel: Is the long haul low cost model sustainable in the long term?
New aircraft technology like the 787, A350, and larger single aisle aircraft, as well as evolving passenger preferences and stable fuel prices are encouraging LCCs - and restructured full service airlines - to consider new growth opportunities on long, thin routes. What were previously niche city pairs are becoming increasingly mainstream as more LHLCCs come online and disrupt entrenched business models. But the low cost model relies largely for its cost advantage on higher utilisation and higher seating density, features that tend to be diluted as routes become longer.
  • What are the features that distinguish long haul LCCs from their full service peers?
  • Does the long haul model depend on low fuel prices for its survival?
  • Can LHLCCs remain viable as stand alone entities operating point to point or do they need feed traffic from partners or parent airlines?
  • In the face of intensifying competition, should traditional network carriers launch their own long haul LCC subsidiaries? What conditions do they need to be successful?
  • To what extent are the new entrants competing for existing traffic, as opposed to carving new markets?
  • Are there particular features of the new generation equipment might enable sustainable LHLCC growth?

Moderator: US-India Aviation Cooperation Program, Program Director, Sandeep Bahl

  • Cebu Pacific Air, Chief Operations Advisor, Rick Howell
  • Scoot, Head of Sales & Distribution, Trevor Spinks
  • World Airways, Director of Business Development, Adam Weiss
13:00 Lunch Break & Networking
14:00 Airline CEO Keynote Q&A
Air Arabia, Group CEO, Adel Ali
14:30 Panel: The evolution of the airline-airport interface; how can airports (and tourism bodies) cater most effectively for LCCs?
Keeping pace with the changing operational requirements of airlines is complex, with LCCs in particular demanding their own unique features: low costs, simple facilities and quick turnarounds among factors. But as long haul low cost airlines start to proliferate globally and behave more like full service carriers, the need for connectivity becomes critical.
  • What are LCCs looking for in establishing and growing routes?
  • Low cost long haul to short haul connectivity: How do airports identify self connecting passengers and provide the infrastructure to keep them landside?
  • What is virtual interlining and what are the implications for LCC-LCC connectivity?
  • What role can airports play in facilitating virtual interlining?

Moderator: Waltzing Matilda Aviation, CEO, John Thomas

  • Avalon Airport Australia, CEO, Justin Giddings
  • Cebu Pacific Air, Chief Operations Advisor, Rick Howell
  • GMR Airports, Advisor, Bashir Ahmad
15:15 Keynote
New distribution models and IATA NDC specifically have been the topic of conversation for a number of years now, but have largely been seen as the domain of the Full Service airlines. However the standard is not limited to this airline model or to IATA members, so why should Low Cost Carriers care about these developments in the industry? This keynote will explore how these development present both opportunities and threats for LCCs as they compete with each other and FSCs and how they present unique opportunities for new forms of industry cooperation.

Travelport, VP Asia Pacific & Global Strategy, Air Commerce, Damian Hickey [Download Presentation]
15:35 Coffee Break & Networking
16:05 Panel: Evolving LCC distribution strategies to adjust to new business models
Changing consumer expectations, new technologies, the proliferation of intermediaries and recent NDC developments, highlight LCCs’ need to differentiate, decommoditise and better “retail” their inventory and ancillary offerings. What are some of the key factors that will influence future LCC distribution strategies?
  • How disruptive are new players in the current distribution landscape?
  • Is technology enabling greater product differentiation?
  • As LCCs expand into new markets or target business travellers, how is their relationship with the GDSs and other intermediaries evolving?
  • Are LCCs exploiting digital/ automated/mobile channels effectively to distribute their product?
  • Where does the direct channel stand among the new wave of travel distribution models?

Moderator: WebinTravel, Founder & MD, Siew Hoon Yeoh

  • Caravelo, Commercial Director, Jonathan Newman
  • IATA, Director - New Distribution Capability Program, Yanik Hoyles
  • Skyscanner, Senior Director of Strategic Partnerships, Hugh Aitken
  • Travelport, VP Product & Marketing, Air Commerce, Ian Heywood
16:50 Keynote: The New Generation Of Ancillaries
Waltzing Matilda Aviation,
CEO, John Thomas [Download Presentation]
17:15 Panel: Leveraging digital solutions to deliver a personalised customer experience
As price becomes only one of the decisive factors for customers when choosing an airline, airlines must look to differentiate their product and deliver a smooth passenger experience end to end. How are LCCs using technology and working with other players in the travel ecosystem to deliver on these expectations?
  • What are the challenges of personalisation?
  • How do you convert real time insights into an opportunity to personalise the traveller experience?
  • How much data should be shared with ecosystem partners to aid the personalisation experience?
  • Can LCCs really differentiate? What on board services and ancillaries do they offer to delight customers and avoid commoditisation?
  • How are LCCs (and airports) helping to facilitate the smooth transfer of self connecting passengers on-airport?

Moderator: Airline Passenger Experience Association (APEX), CEO, Joe Leader

  • Air Black Box, Group Head of Product, Timothy O'Neil-Dunne
  • Amazon Web Services, Managing Director, Nick Walton
  • HK Express, Commercial Director, Jonathan Hutt
  • Uriel Aviation Holdings, Vice Chairman, Andrew Cowen
18:00 Closing Comments
Travelport, VP Asia Pacific & Global Strategy, Air Commerce, Damian Hickey
18:00-19:30 Networking Reception
Hosted by Travelport

Close of Day 1