The latest issue of Airline Leader, CAPA’s strategy journal for CEOs, looks into the complex, but highly valuable area of airline loyalty - and in particular, frequent flyer programmes. Monetising a brand while enhancing customer loyalty sounds like black magic. While there is enormous potential, not many airlines are doing it well. The report examines the overall FFP landscape, the alternative of outsourcing and considers some of the specifics at the interface between low-cost airlines and full service carriers.
This edition also examines the unfolding drama that is airline distribution and includes a survey of the top 100 LCC/hybrids and their PSS providers. While American Airlines is fighting to reverse what it calls the commoditisation of the airline product, managements are struggling to bend the available technology to achieve what the industry needs. With one of the main strategic and IT challenges occurring at the points at which former LCCs and full service carriers need to connect, “finding the perfect response to the demand for a full functional interface is almost like inventing the cure for cancer – whoever achieves it has a ready-made market.”
Issue 9 can be viewed in full at the Airline Leader website: www.airlineleader.com