Throwing out the pure LCC (Low Cost Carrier) model in favor of the HVC (Hybrid Value Carrier) has been on the cards for some time for Stelios's Orange clad heros. Now they big step, they have agreed to go into the GDS - Amadeus and Galileo for sure. Given their reach these make sense. (Sorry Tex!)
Using the model developed for Norwegian Air Shuttle, the GDS will be charging out a fee for this "service" This fee will be listed in the final pricing.
Impact?
So GOOD for Easyjet - they needed to do this for the broader reach. This gives them what they want and at a model that makes sense
VERY RISKY for Amadeus and Travelport. I believe this is a short sighted decision and will ultimately result in many conventional carriers adopting the model. However so far Amadeus has proved adept at surfing over this issue. However the number of Masterpricer transactions will be a big sticking point. I would love to have listened to that conversation. I doubt that Easyjet had good advice on this subject.
SIGH OF RELIEF for the travel agents - they now have less competition but more work and more cost
NEUTRAL for corporations - not sure its a benefit though - its more paper/processing work
BAD for LCC scanning vendors. But not that bad since Ryanair is not going to follow suit.
GREAT for Ryanair.They wasted no time in crowing over this one. Read the great press release:
http://www.ryanair.com/site/EN/news.php?yr=07&month=nov&story=gen-en-051107
For the other competition, expect Air Berlin however and several others (eg German Wings) to follow suit.
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