New route opportunities: Are markets opened up by new generation aircraft viable over the long term?

New generation aircraft offer game changing economics and range for LCCs, and those low cost operators are increasingly using new generation narrowbodies on longer haul routes.

The Boeing 787 and Airbus A350 widebodies have also changed operating economics on ultra long haul routes, offering a much more profitable proposition than older generation twin aisle jets.

But the right aircraft type is just one factor in successful route development. Although new generation aircraft open up opportunities for numerous new routes, maintaining consistent demand in those markets is paramount, especially once airport incentives are no longer available.

As one the discussion topics at the forthcoming Americas Aviation Summit 2019, CAPA – Centre for Aviation will explore the subject through a panel discussion. Issues that will be considered include:

  • What examples of implementation of new aircraft types has been successful around the world?
  • What opportunities still exist to tap into new aircraft types?
  • What routes will be opened up to the Americas thanks to new aircraft technology?
  • How much reliance is there on premium traffic to make ultra long haul routes sustainable?

As the foremost authority on aviation in the world, CAPA – Centre for Aviation’s events provide cutting edge knowledge about strategic market trends and dynamics to help attendees make informed decisions, delivering the information and connections needed to inspire and improve business. The CAPA Americas Aviation Summit will take place in Denver between 18-19 March 2019.

The summit will examine key commercial and operational issues affecting airlines and airports in the Americas, focusing on both US domestic issues and growth prospects in key international markets.

In line with previous editions of the Americas Aviation Summit, CAPA will challenge leaders of North America’s aviation industry to reflect on what is needed to drive the industry forward, using examples of innovation in outside markets as a benchmark to follow.

Industry rationalisation has helped the US majors enjoy very healthy profits over the last year. But this has not always been kind to airports which previously enjoyed hub status.

Also, the infrastructure that supports the airline industry’s growth is in urgent need of reform. Despite a decades-long acknowledgement that the country’s airports and air traffic management system needs to modernise, little progress has been made.

ULCCs are also making an impact, forcing the US majors to deploy an array of tactics to keep them at bay, in the form of segmented fare families and product unbundling. Further north, in Canada, ULCC start ups have injected renewed competition into the tightly held Canadian market.

Long haul low cost international operations are becoming a feature of the US-Europe market, introducing a new dynamic into the equation. These have until now been the territory of foreign airlines, but with airlines like the mid-cost/mid-frills jetBlue now about to embark on trans-Atlantic operations, a new era of competition could be in the wind.

Meanwhile, new aircraft technology is also reshaping route economics and opening up new markets in ultra long haul destinations to and from the continental US.

The CAPA Americas Aviation Summit seeks to tap into the dynamic changes taking place in the airline industry in this part of the world and address the issues in creative and authoritative ways.

This event, hosted at the Four Seasons Hotel Denver, is a forum for debate and discussion of this strategic issue within the aviation industry and it is attracting delegate interest from across the globe. It is a must attend for those seeking to do business in North America where they can gain first-hand inspiration from airlines, LCCs, airports, travel technology providers, OEMs and financiers.

FIND OUT MORE… visit the CAPA Americas Aviation Summit homepage to find out more about this not-to-be-missed opportunity to discuss relevant issues impacting the aviation sector and learn meaningful insights from your industry peers.