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CAPA TV | March 24, 2018

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Is The Long Haul Low Cost Model Sustainable In The Long Term?

  • On March 9, 2018

New aircraft technology like the 787, A350, and larger single aisle aircraft, as well as evolving passenger preferences and stable fuel prices are encouraging LCCs – and restructured full service airlines – to consider new growth opportunities on long, thin routes. What were previously niche city pairs are becoming increasingly mainstream as more LHLCCs come online and disrupt entrenched business models. But the low cost model relies largely for its cost advantage on higher utilisation and higher seating density, features that tend to be diluted as routes become longer.

  • What are the features that distinguish long haul LCCs from their full service peers?
  • Does the long haul model depend on low fuel prices for its survival?
  • Can LHLCCs remain viable as stand alone entities operating point to point or do they need feed traffic from partners or parent airlines?
  • In the face of intensifying competition, should traditional network carriers launch their own long haul LCC subsidiaries? What conditions do they need to be successful?
  • To what extent are the new entrants competing for existing traffic, as opposed to carving new markets?
  • Are there particular features of the new generation equipment might enable sustainable LHLCC growth?

Moderator: US-India Aviation Cooperation Program, Program Director, Sandeep Bahl
Cebu Pacific Air, Chief Operations Advisor, Rick Howell
Scoot, Head of Sales & Distribution, Trevor Spinks
World Airways, Director of Business Development, Adam Weiss

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