CAPA Global LCC Summit

Singapore, Singapore
1-2 Mar 2018

Day 2: 2 March 2018

08:00 Registration
09:00 Chairperson's Welcome
09:05 Airline CEO Keynote & Q&A: 'Delivering customer focussed low fares travel'
Jetstar Group
, Group CEO, Gareth Evans
09:45 Panel: LCC subsidiaries in FSC airline groups. What are the secrets for success - and the pitfalls?
Competitive pressures on short haul routes have prompted many full service airlines to create LCC subsidiaries, but ensuring the new carrier aligns with the parent strategy poses a key challenge.
  • Do LCCs created by FSCs have a competitive advantage?
  • How does the LCC child operate while maintaining management independence from their parent?
  • Conversely, how does the LCC work with its parent to maximise group profitability? Can the FSC avoid creating just another product line – without the lower cost base to match?
  • Is it possible to introduce seamless interlining despite their different service levels, in order to maximise group network coverage?
  • Should network carriers be prepared to launch Long Haul LCCs – at the expense of, or to complement, their existing operation

Moderator: Crucial Perspective, CEO, Corrine Png

  • Aviation Performance Consultants, Executive Advisor to Peach Aviation, Patrick Murphy
  • DDG International, Independent Airline Executive, Patee Sarasin
  • flyadeal, CEO, Con Korfiatis
  • Scoot, Head of Sales & Distribution, Trevor Spinks
10:30 Coffee Break & Networking
11:00 Panel: Cross border JVs and LCC alliances. Establishing and operating multi-airline brands

Partnerships of one form or another are critical for enabling expansion across borders in the relatively crowded and increasingly competitive Asian market. These serve as a platform for attracting transit traffic and expanding into different markets. The cross border JV model has allowed Asia’s major LCC groups – AirAsia, Jetstar, Lion Air, and to a lesser extent VietJet – to accommodate foreign ownership restrictions by taking branded minority stakes in local airlines. Similar strategies are being pursued in Latin America and Africa. Smaller LCCs that might fall outside these major groups have established alliances of their own, such as the U-Fly Alliance, consisting of HNA-owned carriers, and the eight member Value Alliance; both groupings are powered by a technology platform linking the member airline websites, crucially enabling the ability to cross-sell all the ancillaries offered by each of the partner airlines, allowing members to grow their passenger base without increasing cost and complexity

  • How effective are cross border JVs and LCC groupings in a) synergising costs b) generating revenues, especially ancillaries and c) increasing traffic
  • What are the opportunities or limitations for creating brand awareness, increasing purchasing power and synergising fleets under the two partnership models?
  • How to strategically manage more than one brand when there is multi brand ownership
  • Can a non aligned LCC survive without being part of either a branded group or LCC alliance?
  • Can the branded JV model and LCC alliance serve as examples for others to follow?

Moderator: National University of Singapore, Professor of Aviation, Alan Tan

  • DDG International, Independent Airline Executive, Patee Sarasin
  • flyadeal, CEO, Con Korfiatis
  • Uriel Aviation Holdings, Vice Chairman, Andrew Cowen
  • Vanilla Air, Senior Executive VP, Mioko Yamamuro
11:45 Panel: Can LCCs really compete in the corporate travel space?
As business customers and corporate buyers increasingly seek value for money, especially for short-haul travel, and a new generation blends work and leisure when travelling, the distinction between travelling for business or personal reasons has become less relevant. This has provided LCCs with the opportunity to compete for ‘corporate’ business that may previously have not been considered a real revenue opportunity
  • What is the awareness level amongst travel managers and buyers of LCCs as an alternative to traditional airlines?
  • What LCCs are chasing the corporate travel dollar and how successful have they been in luring buyers away from entrenched carriers?
  • What obstacles need to be overcome to persuade corporate buyers to use LCCs?
  • The legacy carriers’ view of the LCC “threat”
  • How do you demonstrate value beyond price?
  • Can LCCs profitably realise the yield premium required to sustain a ‘premium’ hard product?

Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison

  • BHP, Global Head of Travel & Expense Management, Joanne Taylor
  • Carlson Wagonlit Travel, VP Sales & Program Management, Michael Valkevich
  • MedAire, General Manager Asia Pacific, Harold Pradal
  • Scoot, Head of Sales & Distribution, Trevor Spinks
12:30 Closing Remarks
12:40 Conference Close, Lunch & Networking