CAPA Global LCC Summit

Singapore, Singapore

25-26 Feb 2019

Monday 25 February 2019

08:00	Registration, Networking & Coffee
09:00	Chairman’s Welcome
09:05	CAPA Outlook: Overview of LCC development in different global markets As LCCs move up the yield curve, even as far as seeking corporate travel contracts, they move further away from the bare bones low cost operation and begin to resemble their FSC counterparts. Many now offer network connectivity, targeting business travellers and going long haul, adding to cost and complexity. Meanwhile FSCs are taking on many of the characteristics of LCCs, notably through product unbundling and discount pricing strategies, especially on short to medium haul routes, thus increasingly challenging the hybrid LCCs. What characterises a “pure” LCC? Are there any left? Aircraft type and configuration Aircraft and crew utilisation Pricing and distribution How do experiences of the LCC business model vary in emerging vs established markets? Can traditional “ultra” low cost short haul point to point operations still guarantee success, where full service airlines are reducing costs and maintaining high yields? Is it inevitable that LCCs move upstream as they become older and as new competition emerges? CAPA - Centre for Aviation, Executive Chairman, Peter Harbison [Download Presentation]
09:35	The Low Cost Travel Revolution: What’s driving it? What are the impediments to growth? There are many global factors driving the growth and providing the risks facing low cost travel. Here, we provide a high level viewpoint on these drivers and risks: A global update on the demographic, population, geopolitical and economic development drivers of low cost travel Aeropolitical and aviation access constraining or paving the way for LCC route development; Supporting infrastructure and technology that will underpin the surge in low cost travel activity Financing the low cost sector – what are the pitfalls? Session provocateur: Skyscanner, Senior Director Strategic Partnerships, Hugh Aitken Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison Panel: American Express, Vice President - Travel Strategy & Partnerships, Johnny Thorsen Changi Airport Group, Managing Director, Ching Kiat Lim Flair Airlines, Chief Commercial Officer, Charles McKee MAVCOM, Director Aviation Development, Germal Singh Khera Skyscanner, Senior Director, Strategic Partnerships, Hugh Aitken
10:35	Coffee Break & Networking
11:20	Airline CEO Keynote AirAsia X Malaysia, Chief Executive Officer, Benyamin Ismail
11:40	Airline CEO Keynote Swoop, President, Steven Greenway [Download Presentation]
12:00	Aircraft Choice: How new generation aircraft are enabling new growth opportunities New generation aircraft offer game-changing economics and range for LCCs. In the narrowbody space, several LCCs are now operating or have on order new generation narrowbody aircraft on long haul routes. Aircraft such as the 787 and A350 have changed the operating economics of competitive ultra long haul markets. Although there are still high costs and challenges associated with operating ultra long haul routes, the newer generation aircraft present a much more profitable proposition compared with original generation ultra long haul aircraft. What examples of implementation of new aircraft types has been successful for LCCs around the world? What opportunities still exist for LCCs to tap into new aircraft types? Will Asian LCCs follow European LCCs in using new generation narrowbody aircraft on long haul routes Is there still a market for one-stop flights over long haul markets? Will sixth freedom operators suffer? How much reliance is there on premium traffic to make ultra long haul routes sustainable? Can LCCs compete with full service carriers? Can fuel efficient ultra long haul aircraft overcome the inherent cost challenges of ultra long haul routes? What new technology will assist LCCs in further growth? How LCCs can leverage on technology to improve business performance and operational efficiency? Moderator: CAPA – Centre for Aviation, Advisor, John Thomas Panel: Airbus, Head of Marketing Asia & North America, Joost van der Heijden Collins Aerospace, Head of Sales, Asia Pacific, Stephen Robinson GECAS, Vice President Product Strategy, Damien Trottier
12:50	Lunch & Networking
13:50	NextGen Long Haul: Remaking traditional network planning New aircraft technology and evolving passenger preferences have opened the door for low cost long haul operations. What were previously niche city pairs are becoming increasingly mainstream. As the low cost long haul model moves to prove its viability, several characteristics begin to emerge. These include the model’s hybridisation – and therefore the market profiles of city pairs served. They also relate, inevitably, to the impact on traditional full service long haul operations and on the very nature of the route network planning structures of the new operators. What is the profile of the successful low cost long haul route? How do low cost long haul operators establish and develop their hubs? How important is finding the right partner to feed traffic at the “other end” of the long haul route? What distinguishes low cost long haul operators from their full service peers? What are the differences between network planning criteria of independent LCCs compared with LCCs that are part of a larger group operation? How do the competitive characteristics of independent LCCs compare with those of full service subsidiaries? How are full service airlines competing on long haul routes with the new low cost operators? What lessons have been learnt to date about low cost long haul operations? Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison Panel: AirAsia X Malaysia, Chief Executive Officer, Benyamin Ismail Boeing Commercial Airplanes, Director, Commercial Marketing, Wendy Sowers Scoot, Chief Commercial Officer, Vinod Kannan Swoop, President, Steven Greenway
14:35	Distribution and digital transformation: A primer on NDC Travelport, Global Head of Air, Damian Hickey [Download Presentation]
14:50	Distribution and digital transformation: The impact of NDC on the LCC market New distribution models and IATA NDC specifically have been the topic of conversation for a number of years now, but have largely been seen as the domain of the Full Service airlines. However, the standard is not limited to this airline model or to IATA members, so why should Low Cost Carriers care about these developments in the industry? This panel will explore how these development present both opportunities and threats for LCCs as they compete with each other and FSCs and how they present unique opportunities for new forms of industry cooperation. Is this increasingly fragmented and complex commercial and technological distribution landscape sustainable? How will business models evolve in response? Is there a need for a direct connect aggregator? Should airlines build lots of direct connects or revert back to lean, centralised distribution channels? Who is going to be offering services to bridge the gap between airlines/aggregators that are NDC compliant and those that aren’t? Will it be the GDS and IT providers, other airlines or speciality providers? How are newer intermediaries adding value to airline distribution? How do airlines enhance their digital shopfront? Are airlines over-emphasising the importance of airline.com over mobile messaging platforms and bot technologies? Moderator: Travelport, Global Head of Air, Damian Hickey Panel: American Express Global Business Travel, General Manager Singapore & Thailand, Sanghamitra Bose IATA, Director Industry Distribution Programs, Yanik Hoyles MW Travel Consultancy, Principal, Martin Warner
15:35	Coffee Break & Networking
16:05	Running an LCC: What is the recipe for success or failure? How do LCC subsidiaries work? What challenges of the parent-child complex exist? What opportunities exist to drive growth? How can LCCs capture new travellers and meet their expectations? What LCC selling opportunities are successful and what new modes exist? How can airport’s assist in ensuring success? Moderator: Korn Ferry, Senior Client Partner, Asia Pacific, Torbjorn Karlsson Panel: Caravelo, Chief Commercial Officer, Jonathan Newman flyadeal, Chief Executive Officer, Con Korfiatis London Stansted Airport, Chief Commercial Officer, Aboudy Nasser T.B.L., Director, Executive Officer, Hiroyuki Uehara
16:50	The booming LCC market in India CAPA India, Director South Asia, Binit Somaia [Download Presentation]
17:20	End of Day 1
17:20-19:30	Networking Drinks