Low Cost Long Haul – Will it work? We speak to the industry! Volume 2

The topic of low cost long haul is a major buzz in the aviation sector as airlines take advantage of the efficiency of new generation airliners to replicate the successful short haul model into the long haul arena. But will it succeed and is now the right time for its evolution?

In October, The Blue Swan Daily spoke to senior airline executives at the CAPA ACTE Global Aviation and Corporate Travel Summit in London to learn their views (see ‘Low Cost Long Haul – Will it work? We speak to the industry!‘) and last month raised a similar discussion point with senior executives at the CAPA Asia Aviation Summit in Singapore.

flyadeal chief executive officer Con Korfiatis, says that while he didn’t see a business case for the model five years ago, his views are now being swayed. He particularly sees “an enormous potential” for the model in Saudi Arabia…

Cebu Pacific chief executive adviser Mike Szücs, says that while low cost in the short haul market is a “slam dunk” and “works like a bus service in the sky,” he says things are very different in the long haul market. “it will work, but it won’t work in every market,” he explains, highlighting need for high local demand or feed…

Association of Asia Pacific Airlines director general Andrew Herdman, says the “jury is still out” on low cost long haul airlines, but notes the further “convergence of the full service and low cost model”…

Dubai Airports chief executive Paul Griffiths, says low cost long haul “has always been with us” like on markets such as the trans Atlantic where lowest Economy fares have been below the cost of provision and offset by premium tickets. However, he acknowledges that a new opportunity is being enabled by efficient modern generation airliners…