Article: Competing with Low-Cost Carriers: Cutting Costs vs Growing Revenue

[AFF Editor]

Competing with Low-Cost Carriers: Cutting Costs vs Growing Revenue is an article written by the AFF editorial team:

Competing with Low-Cost Carriers: Cutting Costs vs Growing Revenue

When low-cost carriers steal their passengers, full-service legacy airlines can either try to compete or price or offer a more premium experience. Airlines don't always make the right decision.

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[CaptJCool]

spectrum, airlines like Singapore Airlines, Cathay Pacific and Turkish Airlines have opted to compete by providing a great service that is clearly superior to the low-cost alternatives.

Two of these don’t run a domestic service given their geographical size. (Could argue about mainland China services perhaps)
Their strategy is to incentivise Australians to travel internationally with them

QF scores 15% of Oz international. Lots of alternative good service airlines - ah the wonders of competition

 

[Dvg]

I’ve started using Cathay again instead of qantas for flights to Asia, sooo much better service, planes, crew, food etc

 

[Revenge]

Great analysis!

On the low cost subsidiary approach, what I think Jetstar and Germanwings/Eurowings have done well is incorporating earing points and status on QFF and Miles&More respectively, keeping the loyalty of their full service customers when they do need to fly a holiday destination or on a budget.

On the doubling down on premium approach, I've seen a bit of this from Air Canada recently. I just got an email from them this week saying they will be serving free beer and wine on internal Canada and US flights this summer!