CAPA Live: A future for ULCC-FSC partnerships?
Logic dictates that the stark differences in the full service and ultra low cost business models would prohibit those operators from ever forging partnerships. But in a post-pandemic world, the idea may not be as far-fetched as it seems.
Speaking at the recent CAPA Live July conference, Indigo Partners Managing Director William Franke stated that the opportunities for ultra low cost carriers (ULCCs) and full service airlines to integrate in some way “will be a major discussion item for leadership in the airline sector over the course of the next couple of years”.
It is an intriguing conclusion from Mr Franke.
For now, it seems those two business models will emerge from the pandemic as the most robust, while operators falling in between are subject to far more uncertainty.
- Indigo Partners' William Franke believes industry discussion will pivot to tie-ups between ULCCs and FSCs.
- But the actual implementation of those partnerships will be a challenge.
- Airlines that fall in between those two business models could be at the greatest risk.