low cost carriers – boon or bane? events/waga2011/presentations/… · ys fl united states north...
TRANSCRIPT
David Stroud1st November 2011
Low Cost Carriers – Boon or Bane?
Introductions
• EVP Airports - UBM Aviation
• Routes events - at interface between airports and airlines
• Background in Airport Consulting, Airport Management
• Today’s perspective - the side of the opportunity
LCC’s - Boon or Bane?
• Why are we still asking this kind of question?
• LCC’s a reality
• Amongst largest airline brands globally
• For many airports, the largest customers
• Level the same question to all types of airlines
CC Facts and Figures - World s Top 10 Airlines, Pa
s DL United States North America Mainline 162
lines WN United States North America Low cost carrier 882
nes AA United States North America Mainline 86
rn Airlines CZ China Asia Pacific Mainline 764
FR Ireland Europe Low cost carrier 72
M Group France Europe Mainline 713
n Airlines MU China Asia Pacific Mainline 649
LH Germany Europe Mainline 589
s UA United States North America Mainline 540
Source - RATI, IATA 2010
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s DL United States North America Mainline 162lines WN United States North America Low cost carrier 882nes AA United States North America Mainline 861rn Airlines CZ China Asia Pacific Mainline 764
FR Ireland Europe Low cost carrier 721M Group France Europe Mainline 713
n Airlines MU China Asia Pacific Mainline 649LH Germany Europe Mainline 589
s UA United States North America Mainline 540US United States North America Mainline 518U2 United Kingdom Europe Low cost carrier 488AF France Europe Mainline 470CA China Asia Pacific Mainline 462
n Airways NH Japan Asia Pacific Mainline 457QF Australia Asia Pacific Mainline 444
rlines CO United States North America Mainline 435Corporation Japan Asia Pacific 419
nes OO United States North America Regional 404JL Japan Asia Pacific Mainline 347
éreas JJ Brazil Latin America Mainline 345AB Germany Europe Low cost carrier 335
éreas Inteligentes G3 Brazil Latin America Low cost carrier 329ays Holdings United States North America Regional 319
EK United Arab Emirates Middle East Mainline 314s BA United Kingdom Europe Mainline 305s (THY) TK Turkey Europe Mainline 291
c CX China, Hong Kong Asia Pacific Mainline 267ys FL United States North America Low cost carrier 247ys B6 United States North America Low cost carrier 242
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LCC’s share of intra-regional capacity globally now 27%LCC annual growth of 15% over last 10 years 3% for legacy carriers
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LCC’s share of international capacity globally still modest at 8% but share
Source -
LCC’s share of Europe and Americas market 30% +Ryanair now 9% of Intra-Europe capacity
Southwest share of USA market grown from 14%-18% since 2005Westjet now 26% of Canada market
In India LCC’s share grown from 17% in 2005 to 47% of all seats in 2011
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UK is largest source of LCC capacity but growth rate 4%German decline due to environmental tax?
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LCC Boon or Bane? The side of the opportunity
Fastest opportunity for new routes, traffic growth at regional airports
Prover of markets
Long haul LCC brand attraction
New connectivity
Force airports to be commercially creative, new relationship with passeng
The market disruptor, demand the breaking of conventions, bringing forwa
new custom and practice
Opportunities in differentiation
LCC Boon or Bane? Predictions
One day the largest airline in the world will be an LCC brand
One day all countries largest airlines will be LCC’s
Most connections will be self-built
One day Airports will collect charges directly from passengers
One day passengers will choose which airport facilities they use, not airlin
One day Airlines will operate at Airports free of charge!! (Maybe Airports w
Airlines to fly!!)
One LCC’s will be regarded as legacy airlines, a new disruptor will take th
place.
