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Both network and low-cost carriers are converging on a “middle ground,” which, over time, will result in a game of commodities. To prevent this, careful consideration of competitive advantages is needed across all parts of the business, in particular, channels to the consumer, service model and operations. Of course, other factors, will also be critical. But targeting the right consumers with the best business model is paramount for a successful, long-haul journey.
A changing landscape
The composition of the industry has changed dramatically in just a few short years. Recent market share changes are driven by low-cost, “no-frills” carriers capitalizing on structural cost efficiencies and leveraging other advantages in the marketplace...
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