Global LCC Summit 2018 Highlights
Since LCCs became widely established over the course of the 21st century, in Europe, then in Asia and Latin America, the model and style has proliferated and evolved enormously.
The basic form, of the no frills, ultra low cost airline has in most cases morphed into often unrecognisable shapes. Eschewing basic principles has become standard practice, to the extent that the product is indistinguishable from the legacy model it has disrupted.
Inevitably, in the quest for higher yield and greater diversity of opportunity, legacy features have been adopted; long haul operations, with network connections, business class seating, codesharing and connectivity, distribution through GDSs and much more. With very large order books, in some cases some LCCs have also established leasing companies to dilute risk.
The legacy features have also been adapted, often to generate ancillary revenue for services which historically were part of the bundled product.
And at the same time, full service airlines have rushed to adopt many of the practices of the LCCs – to the extent that baggage and rebooking charges accounted for almost all the profit of the highly profitable US majors.
At CAPA’s Global LCC Summit in Singapore, March 1/2, 2018 (Capella), LCC CEOs and experts from every continent met to discuss the key directions the industry is taking. This was a new event for CAPA, complementing its existing suite of global strategic industry forums held in key markets across the world.