Press release
Full Service Carrier Market 2018 by Global Leaders: American Airlines, China Eastern Airlines, China Southern Airlines, Delta Airlines, United Airlines, Air China, Air France
Market Highlights:Full service carriers (FSCs) offer full services (including meals, and other amenities) that are mostly included in the flight ticket cost. There may be other additional services (ancillary services) provided at an additional cost as an add-on services. FSCs are mostly based on 'hub-and-spoke' business model and have major airports as their hub.
In the full-service airlines segment, there isn’t much space to bring in vast changes apart from differentiating on in-flight services, as most airlines want to keep their costs low. With the entry of new challengers and excessive competition from LCCs, the FSCs are thus aggressively introducing new loyalty rewards programs to woo and retain frequent flyers. In the situation where the price and service differentiation between FSCs and LCCs is narrowing, the FSCS are introducing new services as a key differentiator. For example, in India, as LCCs compete largely on costs, the war between Indian FSCs may well play out through their loyalty programmes. The signs are clearly visible as Jet Airways (a major FSC from India), looking to protect its base, tweaked its frequent flyer programme in 2015.
As per case study, Jet Airways’ upgraded programme has five tiers which entitles members to enjoy benefits like access to exclusive lounges, higher baggage allowance, priority check-in and waiver of certain fees. Faster upgrades or easier retention of existing tier, along with the enhancements and benefits are all aimed to ensure deeper guest engagement with and loyalty towards Jet Airways.
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Major Key Players
American Airlines,
China Eastern Airlines,
China Southern Airlines,
Delta Airlines,
United Airlines,
Air China,
Air France,
All Nippon Airways,
British Airways,
China Eastern Airlines, Emirates, Lufthansa, and Turkish Airlines.
The Global Full Service Carrier Market is expected to grow at a CAGR of around 4% during 2016-2021. Factors driving the market are growing demand from emerging market, attractive & customized offers for better passenger experience, and growth in scheduled air passenger traffic.
Industry/ Innovation/ Related News:
November, 2017:- It was reported that Singapore Airlines Ltd., the first carrier to install a double bed in the aircraft cabins, would invest USD 850 million to refit all of its Airbus SE A380 jets, to enhance the passenger experience.
March, 2015 - HAECO Cabin Solutions, a unit of the HAECO Group, was awarded a comprehensive aircraft fleet modification program by Air Canada. It included complete design engineering, certification, and installation of the aircraft interiors on 18 Boeing 777-200 and -300 aircraft.
Full Service Carrier Market – Segments
For the convenience of the report and enhanced understanding; the full service carrier market is segmented in to two key dynamics:
Segmentation by Airline Class: Business Class, First Class, Premium Economy Class, and Economy Class.
Segmentation by Regions: Comprises Geographical regions –Americas, Europe, APAC and Middle East and Africa.
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Regional Analysis
As per the market estimates, APAC will likely have an annual average growth of 6.3% in passenger traffic for the next 20 years. It is estimated that almost 50% of global air passenger traffic over the next 20 years will originate from APAC. APAC will likely account for the most air passenger traffic by 2035, overtaking North America and Europe. In 2014, APAC accounted for about 34% of the global air passengers. The region has witnessed one of the highest growth rates in the global aviation industry and will likely drive the industry for the next two decades, as demand becomes saturated in mature markets such as Europe and North America. With a population of more than four billion people, APAC is home to 60% of the global population. Growth in GDP and increasing purchasing power in the region, mainly fuelled by emerging countries such as China and India, contribute to an increased demand for air travel. Meanwhile, other East Asian countries have also witnessed rapid growth in air traffic; they are thus lucrative markets for full service carriers.
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