CAPA Low Cost Long Haul Global Summit
4-5 Oct 2018
FRIDAY 5 October 2018
|08:00||Registration, Networking & Coffee|
CAPA - Centre for Aviation, Chief Financial Analyst, Jonathan Wober
Airline Keynote and Q&A: Creating a Global ChampionAir Canada Rouge, President, Duncan Bureau [Download Presentation]
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.
Moderator: European Aviation Club, Chairman, Rigas Doganis [Download Presentation]
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.
Moderator: Mango Aviation, Managing Partner, Andrew Cowen
Coffee Break & Networking
Hosted By Mercado Lonja Del Barranco
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.
Moderator: Comtrade Digital Services, VP/GM Mobility & Travel, Marko Javornik
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.
Moderator: CAPA - Centre for Aviation, Editor, Blue Swan Daily, Richard Maslen
Lunch Break & Networking
Hosted by Acuario de Sevilla