Articles tagged “low-cost carriers”

The best CEOs know when to quit and Carolyn McCall’s decision to jump ship at a pivotal time for UK airlines is perhaps a sign that there might be tough times ahead.

With good management, this ultra low-cost airline strategy is profitable just about everywhere. The key? Airlines like Viva Aerobus must be fanatical about costs, and they must provide the cheapest fares, all the time. They also should treat their customers fairly.

This is probably a good business decision. Economy class fares from Asia to the United States and Europe are already low, because there's so much competition. The market probably doesn't need another entrant — at least for now. And who knows? Air Asia X might change its strategy at some point.

The low-cost, long-haul revolution is only just starting to take off. Will full-service carriers be able to adapt to this new reality or are we about to see a total realignment?

To the average flyer this makes little sense. Why would a Scandinavian airline build a new airline with the same name in Ireland? But many consumers expect to pay 30 or 35 Euros to fly from Copenhagen to London. If an airline is going to offer those prices, it needs to control costs.

EasyJet’s growth plans hinge on having the requisite number of pilots to fly its aircraft. It will have to offer enticing packages to recruit the right people in an era of shortages.

For economic reasons, the transatlantic aviation market has been a hotbed of innovation since the first direct flight almost 100 years ago. Building on the foundations set before, the new disrupters believe we are on the verge of a huge change. Will it last?

Given some of the misplaced comments made by UK ministers tasked with leading the country's exit from the European Union, Ryanair's comments might be a touch optimistic. Still, the importance of aviation to both sides means that some form of deal will likely be done by March 2019 to avoid a worst-case scenario of grounded aircraft.

Is Level a legitimate attempt by International Airlines Group to build a long-haul, low-cost carrier? Or is it a "fighting brand" designed to make Norwegian Air's expansion more challenging? Time will tell.

When others said low-cost, long-haul air travel might not work, Norwegian Air CEO Bjørn Kjos thought differently. So far he has been right — Norwegian's long-haul flights are popular with passengers — but legacy carriers are starting to fight back. It'll be interesting to watch Norwegian battle with them over the coming years.