Philippine Airlines senior financial advisor sees convergence of low cost and full service

Philippine Airlines senior financial advisor Ian Reid, speaking at the CAPA Asia Aviation Summit, noted (15-Nov-2016) a convergence between low cost and full service airline models, with full service carriers reducing costs to compete in the short haul market and LCCs adding features to compete on long haul. Mr Reid said full service carriers cannot afford to give up domestic operations to LCCs as it is important for feeder traffic. Mr Reid also noted LCCs are adding features including seat allocation, frequent flyer programmes and alliances.