CAPA Low Cost Long Haul Global Summit

Hamburg, Germany

10-11 Oct 2019

Thursday 10 October 2019

8:00	Registration, Networking & Coffee
9:00	Chairman’s Welcome
9:05	City Welcome Hamburg State Parliament, Senator for Urban Development, Dr. Dorothee Stapelfeldt
9:15	CAPA Low Cost Long Haul Outlook CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison
9:40	Airline Keynote Air Arabia, CEO, Adel Ali [Download Presentation]
10:00	The Long Haul Low Cost Air Finance Outlook LCCs, as the newer players in the industry, are competing to meet future growth needs. long haul low cost is an emerging market and with this comes the need for new and improved aircraft.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? What is the risk profile of an independent LCC vs a subsidiary? Should airlines lease or purchase outright from the OEM? Should LCCs with large order books establish their own leasing companies? What skills are necessary for an LCC to be successful in this very different venture – while maintaining the airline operation? Moderator: SMBC Aviation Capital, Head of Strategic and Market Analysis, Shane Matthews Panel: Air Lease Corporation, Executive Chairman, Steven Udvar-Hazy BOC Aviation, Managing Director & CEO, Robert Martin Boeing Commercial Airplanes, Director, Market Analysis, Wendy Sowers Gramercy Associates, Managing Director, Tony Davis
10:45	Welcome by Host Hamburg Airport Hamburg Airport, CEO, Michael Eggenschwiler [Download Presentation]
10:55	CAPA Membership Presentation CAPA – Centre for Aviation, Sales Director, Rowan Lanser

11:00

Coffee Break & Networking

11:30

The trans-Atlantic Shift: What Impact will LCLH have on this Important Market?
Long haul low cost international operations are becoming a feature of the US-Europe market, introducing a new dynamic into the equation. Until now, the market has been the territory of foreign airlines, but with airlines like the mid-cost/mid-frills JetBlue Airways now about to embark on trans-Atlantic operations, a new era of competition could be in the wind.
There can be no doubt that new aircraft technology and new business models have contributed to the expansion of the trans-Atlantic market. LCCs have been significant agents of this change on the North Atlantic, led by Norwegian.

What does the future of low cost long haul look like between these regions?
Is there room for further low cost long haul growth across the Atlantic?

Moderator: John Byerly, Consultant, Principal, John Byerly
Panel:

American Airlines, Director Sales Programs, Ivonne Brauburger
Norwegian, EVP Strategic Development, Tore Østby

12:15

How the Middle East LCCs will change Asia to Europe Long Haul
Asia Pacific has been a pioneer in the development of the low cost long haul model, having had such flights for 12 years, or seven years longer than any other region. Nearly 40% of low cost long haul routes touch Southeast Asia and nearly 15% touch Australia, making them the world’s largest low cost long haul markets.
However, LCC growth in the Middle East has fuelled speculation this region could tap into the long haul low cost market and completely redefine Asia to Europe long haul. Flydubai has grown the fastest of the Middle Eastern carriers, expanding its fleet from 35 aircraft in Apr-2014 to 47 aircraft in Apr-2019 (or 58 aircraft when its 11 737MAX 8s are included). Air Arabia has added nine aircraft over the past five years, from 31 A320s in Apr-2014 to 40 A320s in Apr-2019 (according to the CAPA Fleet Database).

What long haul Asia and Middle East markets are poised for LCLH growth?
Are the Middle East LCCs targeting long haul routes?
What impact will Middle East routes have on Asia?

Moderator: CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison
Panel:

Air Arabia, CEO, Adel Ali
flyadeal, CEO, Con Korfiatis

13:00	Lunch & Networking
14:-00	Airline Keynote: Shaping the industry – Lufthansa Group in times of change Lufthansa Group, Member of the Executive Board and CCO Network Airlines, Harry Hohmeister
14:20	Low Cost Long Haul Strategy: Feeding the Network Low cost long haul operators are establishing partnerships with short haul low cost airlines as a means of expanding their network breadth and supporting their growth aspirations. For long haul operators, connecting traffic is critical in scaling sustainably, especially as very few long haul destinations generate enough demand to justify year round capacity, while their partners benefit from additional traffic growth in short haul markets. Legacy carriers, who have long ceded competitive ground to short haul LCCs, could see history repeating itself as long haul-short haul LCC partnerships gain more momentum and disrupt full service carriers’ long haul networks. Does the group strategy lend itself best to delivering connecting traffic? How do long haul-short haul partnerships enable growth and scale? Are these new partnership arrangements set to disrupt network carriers’ long haul operations? How seamless are self connecting platforms and virtual interlining? In which markets do long haul-short haul LCC partnerships proliferate? Can long haul low cost carrier operate as stand alone entities without short haul partners? Moderator: CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison Panel: flyadeal, CEO, Con Korfiatis Lufthansa Group, Member of the Executive Board and CCO Network Airlines, Harry Hohmeister Royal Jordanian, President & CEO, Stefan Pichler
15:05	Keynote: Distribution and Digital Transformation: The Impact of NDC on the LCLH Market Travelport, Head of Europe, Air Partners, Mike Rock [Download Presentation]
15:30	Coffee & Networking
16:00	How will Investing in Technology Help Drive LCLH Growth? Part of the growing success of LCCs around the world is their ability to tap into key technologies to access their customer base. With full service carriers all but caught up, what new and exciting ways exist for LCCs to communicate and market to new travellers? What is driving passenger behaviours? What tools are available to airlines which could influence traveller behaviours? What does the low cost long haul traveller look for? How is this different from short haul LCCs and full service carriers? Moderator: CAPA - Centre for Aviation, European Content Editor, Blue Swan Daily, Rich Maslen Panel: Bluebox Aviation Systems, Director Sales - EMEA, Mark Stevens Caravelo, CCO, Jonathan Newman Skyscanner, Commercial Director, Gavin Harris
16:45	Keynote: Norwegian - the story of setting up a new LH network model Norwegian, EVP Strategic Development, Tore Østby [Download Presentation]
17:05	Closing Remarks
19:00	Networking Dinner at Panoramadeck in the Emporio Building. Hosted by Hamburg Airport