Over the past decade, more than half of the world’s new entrant long-haul airlines have been low cost. This is a radical break from the full service norm and a quick sprouting of low-cost, long-haul.
CAPA’s Airlines in Transition events address the various forms that airlines are taking as they adapt away from their previous labels of LCCs and full service airlines. The motivation for undergoing this metamorphosis is apparent in the valuable corporate sector, blurring the earlier distinctions.
It would appear that, despite our self-perception, humans are irrational and given to herd behaviour and various cognitive biases. We use the physical to anchor our bias, in particular relying on the technical or mathematical.
There are numerous definitions of “disruption”, but the one that fits best in the context of industry change is “the prevention of something, especially a system, process, or event, from continuing as usual or as expected”.
The potential of trans-Atlantic LCC operations was discussed at IATA’s 2013 World Passenger Symposium. Then-Ryanair COO and Deputy CEO Michael Cawley flatly stated Ryanair would not enter the trans-Atlantic, despite statements otherwise from the more maverick Michael O’Leary. Some however think trans-Atlantic is purely a PR stunt for Ryanair, a topic that keeps it in the headlines.
Unprecedented attention has been directed at the confrontation provoked by three major US network airlines, the biggest in the world, as they allege the three major Gulf carriers are unfairly subsidised.