CAPA Low Cost Long Haul Global Summit

Seville, Spain

4-5 Oct 2018

FRIDAY 5 October 2018

08:00	Registration, Networking & Coffee
09:00	Chairman's Welcome CAPA - Centre for Aviation, Chief Financial Analyst, Jonathan Wober
09:05	Airline Keynote and Q&A: Creating a Global Champion Air Canada Rouge, President, Duncan Bureau [Download Presentation]
09:30	LCCs working as part of a full service/low cost group: secrets for success The majority of low cost long haul airlines operate either as part of a larger low cost group or they are subsidiaries of full service carriers. Indeed the number of successful independent low cost long haul operators is rare; currently there is only one independent airline in the newly launched French Bee, while another start up, US based World Airways, is in the works. But independent long haul LCCs have historically struggled because they have lacked short haul feed from a sister airline, adding merit to the argument that long haul LCCs work better if they are part of an LCC group with short haul connectivity. Meanwhile in an attempt to combat growing LCC competition, many full service carriers have wisely avoided unsustainable price matching (although tiered fare products are a popular tactic amongst the US majors) and launched their own LCCs. Yet embedding a low cost culture within a legacy environment poses its own set of challenges, especially where services and systems are shared. A constant threat is that the subsidiary cannibalises the principal’s mainline traffic. But the success of Qantas’ Jetstar, launched more than a decade ago, shows that if executed correctly, low cost subsidiaries can generate remarkable synergies for both parent and child carrier. How are the traditional operators responding to long haul low cost competition? Price matching or launching their own low cost brand? Is it possible for traditional hub-based network airlines and LCCs to co exist on long haul sectors? What is the key to making a low cost long haul subsidiary work? How do you clearly differentiate the airline brands, ensure the networks are complementary and avoid cannibalisation? Does a low cost long haul airline only work when part of a larger group? What are the opportunities or limitations for creating brand awareness, increasing purchasing power and synergising fleets under the two partnership models? Can low cost subsidiaries ever be considered true LCCs if they’re owned by parents with high cost legacy structures? In the absence of partner feed from a short haul sister LCC or the backing from a full service parent, what are the options for independent operators to sustainably launch long haul operations? Moderator: European Aviation Club, Chairman, Rigas Doganis [Download Presentation] Panel: Air Canada Rouge, President, Duncan Bureau flyadeal, CEO, Con Korfiatis flynas, Senior Vice President, Paul Byrne T.B.L. (JAL's new LCC), Executive Officer, Hiroyuki Uehara VietJet Aviation, Member of Board of Directors, Cuong Chu
10:15	Adapting marketing and distribution strategies for long haul customers It is questionable whether LCCs can continue to adhere to simple, low cost distribution methods, given the inevitable complexity that low cost long haul generates. At the very least, a more flexible approach to marketing and distribution is required and LCCs are responding and adapting to the (often different) needs of long haul customers, where price for example, doesn’t hold as much sway in promoting brand stickiness. What marketing and distribution strategies can LCCs adopt to support their growth in the long haul arena? What is the value of an omni channel approach? How to find the right touch points as multi channel engagement becomes the new norm in the current marketing and selling environment? How can LCCs leverage data and new technologies to offer more personalised end-to-end travel content that engages consumers and builds up trust? Do frequent flyer programmes work for low cost long haul airlines, as an engagement and distribution tool? How important is price in incentivising travellers to book? Moderator: Mango Aviation, Managing Partner, Andrew Cowen Panel: Air Canada Rouge, President, Duncan Bureau Amadeus, VP Strategy & Marketing, Airlines, David Doctor Aviation Performance Consultants/Peach Aviation, Chairman/Executive Advisor, Patrick Murphy Skyscanner, Senior Director, Commercial, Hugh Aitken
11:00	Coffee Break & Networking Hosted By Mercado Lonja Del Barranco
11:30	Generating non-ticket revenue streams - Leveraging retailing and ancillary initiatives LCCs are constantly looking at finessing their retailing and merchandising strategies – whether it’s during the booking phase, pre flight or onboard, with relevant, timely offers that are easily accessible (preferably via mobile) and easy to pay for. This is especially important in today’s digitalised environment, where onboard connectivity is virtually a must have and almost as critical for the traveller as getting to the destination. How can airlines make full use of their connected and captive audience – and generate healthy ancillary revenues in the process? How will the ancillary strategies of the region’s LCC continue to evolve? How is technology enabling the growth of the airline as retailer? Beyond a la carte pricing, baggage and meals, what are some more creative ways of achieving ancillary revenue? What are the best practice examples of airlines that have maximised their retail and ancillary strategy? Moderator: Comtrade Digital Services, VP/GM Mobility & Travel, Marko Javornik Panel: Aviation Performance Consultants/Peach Aviation, Chairman/Executive Advisor, Patrick Murphy Caravelo, CCO, Jonathan Newman easyJet, Head of Retail Strategy, Claire Evans
12:15	Can low cost long haul airlines cater to corporate and business travellers? 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, Editor, Blue Swan Daily, Richard Maslen Panel: BCD Travel, Senior Vice President Supplier Relations, Thomas Stoeckel flyadeal, CEO, Con Korfiatis London Stansted Airport, CCO, Aboudy Nasser WTTC, Director Europe & Latam, Maribel Rodriguez Gamero
13:00	Summit Wrap
13:15	Lunch Break & Networking Hosted by Acuario de Sevilla