How can LCCs (and all airlines) improve profitability? The simple answer is by cutting costs and increasing revenues, ancillary and otherwise. The complicated answer requires a bit more detail. Jim Parker, Managing Director at Raymond James Financial gave the concept some serious thought for his presentation at last year's World Low Cost Airlines Congress in London. In the talk, he identified three key areas:
Â· When can going hybrid truly add value to your bottom line?
Â· Reducing premium costs to be able to charge premium fare
Â· Dissecting the business model of 2 truly low cost airlines in 2 different geographies – Americas & Europe – why are they successful?
Find out what Jim had to say on the topic by downloading his presentations slides for free here.
I'd be interested to hear your thoughts on the topic, either in the comment box below, or in person at this year's World Low Cost Airlines Congress. If you'd like to join Jim, Michael O'Leary, Willie Walsh and many more at the event please visit the website to find out how to register.