Would the Real Low Cost Carrier Please Stand Up

The model for LCC airlines has changed over the past few years. At last week's World Low Cost Airline Congress, that question kept popping up.

Ralf Anker of Anna.Aero does a good job of keeping things in perspective. I really like the website and recommend people who are interested in the model to read it on a regular basis.

He gave a spirited presentation last week on the subject comparing the top real LCCs. The interesting thing is that he has so far not taken into consideration the GCC carriers such as Fly Dubai. Nor does he rate Vueling as a LCC - which is understandable as they have become more like a full service airline.

The emergence also of long haul airlines is beginning to show. Feel Air CEO Kai Holmberg was on one of the panels.

Clearly across the board the adoption of some of the successful LCC characteristics are paying off. You see the unbundling of the product occurring in almost all instances. At the same time you also see the hybridization by the LCCs of things like - offering a frequent flyer program, participating in the GDS and moving to regular airports. But the core principles seem to stick. Focus on costs and simplicity of product.

As was said several times during the conference - the big boys are coming to the LCC model. Few are going the other way.

Cheers

Amex: "no alternative to the GDS for air bookings"

Thanks to Professor Tim for letting slide this off his twitter feed.

Charles Petrucelli probably one of the largest traditional players left as head of American Express Travel must have his head somewhere with very little sunshine.

Despite his having had deals with several of the GNEs and direct offers from many airlines to direct connect AND despite having their own desktop initiative... still says this?

I find that the statement must be self serving since Amex cannot seem to execute their independence. So I think we have to take this either as a die hard defense of the GDS model (and its attendant revenue stream to Amex) or a head in the sand, Luddite-style statement that just beggars belief. Its the same logic that GDSs use to promote their channel as delivering higher yield traffic to Hotels and Airlines. Sure they deliver it - but why? And can you therefore make the leap that this is where you should focus your distribution efforts.

So Amex - you had better hope that not too many airlines are listening to your pronouncement, because if they really want to optimize their distribution - then your value is not as strong as it once was and definitely not as invulnerable as you may suppose.

I also guess they really are not interested in the millions of passengers - business folks and vacationers - who book and fly on LCCs daily worldwide.

Cheers