How can full service carriers deal with the growing market share of low cost carriers in the short haul market? And after the internet and the growth of mobile, what technological innovation will disrupt the travel sector? These were some of the questions that emerged during the CAPA airline summit in Dublin.
Amadeus Vice President of Distribution Marketing, Decius Valmorbida, was on stage, debating these issues with other leaders in the travel sector. He shares some insight on what he sees as the future for airlines in transition.
What will be the next digital revolution? Is this a threat or an opportunity for airlines?
“Managing a business looking at what is a threat doesn’t make sense. Airlines need to focus on opportunities,” says Valmorbida.
Which business model will prevail: the low cost carrier model, or the full service carrier model?
“On the short haul, the low cost carrier model is imposing itself, while on the long haul, the full service carrier model is still expected from travellers. The question is, how can airlines make those two things work?”
1 Comment
Thank you Decius and Candice for this always interesting updates from CAPA in Dublin.
In my opinion, however, asking what business model will prevail between LCC and FSC is not the right question.
Even if, recently, the two models are trying to converge (see WOW and Norwegian planning to expand in long-haul), this two type of Carriers remain independent and complementary (see the creation of Transavia for Air France-KLM, Germanwings/Eurowings for Lufthansa, Iberia Express/Vueling for IAG, et.).
An interesting long-term question could be: will the pure FSCs and LCCs made some kind of agreement/partnership for long-haul and short/haul in order to creating a unique global airline market?