Exclusive extracts from this 70-page-long report:
- Who are the key players?
The coming of age of Low Cost Carriers (LCCs) and the development of a new Ultra-LCC class of carriers have rapidly altered competition dynamics. In today's extremely competitive marketplace, traditional full-service airlines are pursuing reorganisation and cost efficiency initiatives. Most full-service carriers own/operate short-haul LCC airlines and are currently launching long-haul LCC arms.
Groups analysed in this report include: American Airlines, Lufthansa, Air France KLM, IAG, Emirates, China Southern Airlines, LATAM, Aeroflot, Ryanair and Air Asia.
- What are the players' strategies?
American Airlines has been investing to continuously modernise its fleet (withdrawing old engines) and improve product offerings to appeal to customers. So as to maintain a young fleet and expand coverage, it is adding Airbus A321neo and Boeing 787s (100 A321neos and 47 new Boeing 787s on firm order as of April 2019). In tandem, it is looking to improve customer experience by leveraging redesigned Admirals Club and Flagship lounges, new on-board entertainment options (free live TV available on 270 jets – “the only U.S. carrier to offer live TV on international flights”; high-speed Wi-Fi installed on 570 aircraft) and a well-defined price targeting strategy (e.g. Basic Economy and Premium Economy options).
- What are the players' key growth and profitability drivers?
Emirates' revenue expanded by 6.0%, on an annual basis, primarily reflecting continued growth across Europe, the Americas, and African destinations. Performance was supported by flight coverage expansion, underpinned by a mounting network of code-sharing partnerships and fleet growth.