Rethinking LCC loyalty programmes

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Traditionally LCCs have based their value proposition on carrying customers cheaply from one point to another without offering peripheral services. They largely avoid loyalty programme because everyone will come if your price is low, right? But things are changing now. The increase in competition, coupled with the growing focus on business travellers, is leading LCCs to test new models, including …

Long-haul low-cost airline operations: Are we nearly there yet?

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Can low-cost airlines replicate short-haul success on longer routes? Steven Greenway, former Head of Commercial at Scoot, shared his thoughts at Aviation Festival Asia 2016. Here’s a brief summary of his session. What are the biggest challenges for LCCs when considering long-haul? Financials – long-haul operations are very costly. Utilisation – you can get the hours, but you can’t get …

The evolving LCC business model: Towards an integrated air travel business

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Today we are witnessing perhaps the most interesting period of change in the low cost business model. China’s Spring Group, anchored by Shanghai-based budget carrier Spring Airlines, is entering the hotel sector in Asia, turning itself into a comprehensive hospitality company to serve customers throughout their trip. Spring Group took the first few moves in the hotel business with the …

U-Fly Alliance: Showing HNA consolidation and LCC evolving partnership model

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China’s HNA Group is massive with more than 10 airline brands. Under China’s one route one airline policy, the group, though growing larger, still remains fragmented, with companies hardly stitching together to deliver synergies or at least to avoid competitive overlap. That has started to change with four HNA airlines forming the world’s first LCC alliance, the U-FLY Alliance, on …

New airline ancillary revenue management strategies

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Airlines have different customer segments and different network structures. Therefore ancillary products and marketing strategies have to take this into account and need to be tailor-made to fit with the customer’s needs, their buying behaviour and their willingness to pay. Saravanan Ramasamy, Group Head Distribution & Ancillary Commercial of AirAsia and Andrew Cowen, CEO of HK Express joined us at the Aviation Festival …