World Low Cost Airlines, Traditional Carriers and Short Haul offshoots. All the same really? What's really been interesting this week from researching and speaking with all types of airlines, be it a tiny charter service, a medium sized LCC or a huge Traditional Carrier is that the convergence of all their different types of approaches and models is a visible reality. But where will they all fit in Europe?
The concept of competing with LCCs by creating your own short haul offshoot is an interesting way to deal with their domination of Europe, Lufthansa have done this very well with Germanwings. Others such as Alitalia's Air One have struggled in a difficult and maturing market. How have Germanwings done this?
Well they have a great e-commerce platform for one, their current strategic relationship with Lufthansa keeps going from strength to strength (in spite of the doubters) and they are expanding their operations at a reasonable pace. The sustainability of this success will depend on a few things, firstly they need to keep their organisational structure as simple as possible – even when growing keeping things basic can be difficult. Secondly they need to keep on expanding into new markets at a good pace and thirdly keep things fresh! It can be seen that they are actively doing this now and rebranding to offer the âhighest quality airline experience in this sector in Europe'.
Not too surprisingly Virgin Atlantic today announced their latest short haul offering âLittle Red' – giving the rock and roll spirit at a value for money price. In direct competition with BA now that they have taken over BMI, this is really becoming an interesting market where low cost airlines, traditional carriers and short haul offshoots all have a part to play. But ultimately who will survive?
This is one of the key topics of discussion at the Aviation Outlook and World Low Cost Airlines Congress this year, bringing together the leaders of LCCs, traditional airlines and new carriers to discuss what is going to happen in Europe and who is going to take the bulk of the market share?
Why not join us at the World Low Cost Airlines Congress 2013? To find out more about the event, please download the brochure here >