Rapidly changing aviation markets, the rise of digitally empowered consumers, and ongoing industry consolidation are some of the important trends that are forcing carriers to reposition themselves for the future.
In aviation, disciplined cost reduction is a necessity now more than ever. International players must capitalize on opportunities in Asia, address the new dynamics of globalization, and establish lasting relationships with digitally connected travelers. The disruptive changes in the broader airline landscape make brand experiences that much more important, and airlines must constantly work to win the hearts and minds of their consumers.
Getting Airlines on Board with Digital Disruption
Most network and low-cost carriers will need to adapt to survive and thrive in an increasingly consolidated marketplace. In such an environment, it’s crucial for carriers to understand their strengths and leverage them appropriately. Four best practices are essential:
Growing competition for long-haul traffic, along with increased industry capacity, will likely undercut the profitability of Europe’s full-service airlines. Many European airlines will pursue strategic alternatives, ranging from go-it-alone growth to collaboration to full mergers.
Yet the market climate varies across the globe. Carriers in China, already among the fastest growing airlines, are reshaping the Europe-to-Asia and US-to-Asia routes. In the Middle East, some megacarriers have tripled capacity in just five years, while other regional players are pursuing ambitious growth plans.
International aviation players might consider the following strategies: