Hybrid models edge out LCCs
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A new breed of “Hybrid” carriers is quickly overtaking traditional Low Cost carriers (LCCs), according to a study by Sabre Airline Solutions., the global leader of technology solutions for the airline industry, which reveals that more passengers travel on a new breed of “Hybrid” carriers than on traditional LCCs.
The global study of 540 airlines revealed that out of 123 self-nominated LCCs, 59% had added enough complexity to their business model in recent years that they had now evolved into a full service airline (7%) or were part of an emerging breed of “Hybrid” carriers, which blend low cost carrier traits with that of full service carriers (52%).
Only 41% retained true LCC characteristics including point-to-point routes, single aircraft types, single cabin configuration, simple fares with no interline or codeshare agreements and direct distribution usually through the internet.
Furthermore, passenger numbers from 2007 show that these “Hybrid” airlines carried 64% of all passengers in the broader LCC segment.
Gordon Locke, Vice President, Airline Marketing & Strategy for Sabre Airline Solutions, said many pure LCCs have evolved their business to remain competitive and sustainable.
“For many, this has meant adopting some full-service carrier business practices to help grow their passenger base and expand their reach in the market place, although they have often added their own twist on how these business practices are implemented.”
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