Star Alliance CEO sees convergence between FSC and LCC models

Star Alliance CEO Mark Schwab, speaking at the CAPA Airlines In Transition Summit, reported (10-Mar-2016) a growing convergence between full service and low cost carrier operating models, particularly in short-haul markets. Mr Schwab said FSCs are changing business models under "huge pressure" while LCCs are "going up the scale." The alliance developed its "connecting partner model" in order to bring the two together. The alliance aims to expand its network offering to new locations on platforms outside the traditional full service member. Mr Schwab reported interest from other carriers, which see "enormous value" in joining a larger network without the cost and complexity of being a full service member of the alliance.