✈️ What Full-Service Airlines Have Learned from Low-Cost Airlines

Understanding the Shift in Aviation

Having led some key business units within legacy airlines, I’ve witnessed how customer expectations, competition, and margins have reshaped aviation over the years.

One truth stood out clearly: low-cost carriers were not just competitors anymore; they started setting the trend. This change has become a learning opportunity for the entire aviation industry.

Key Areas of Learning

Here are three areas where I believe full-service airlines have learned from low-fare airlines, and how they continue to adapt:

1️⃣ Product: Simplicity Creates Value

Low-cost carriers (LCCs) excel at clarity of offering. "One ticket equals one seat." Everything else is optional for customers to choose.

Legacy airlines have learned that disassembling or unbundling services (like baggage, meals, and seat selection) is not necessarily a downgrade. Instead, it gives customers more control. When executed correctly, this approach builds customer trust and generates revenue streams that contribute directly to the bottom line.

2️⃣ People: Agility Over Hierarchy

LCC teams are often leaner, empowered, and cross-functional. With minimal bureaucracy, decision-making is much faster compared to full-service carriers (FSCs).

FSCs, which have larger structures, can benefit from adopting an empowered frontline model. When cabin crew, sales staff, and ground operations have the autonomy to solve problems quickly, gaining customer trust becomes inevitable. People feel more responsive when they can make decisions swiftly.

3️⃣ Processes: Efficiency is Culture

LCCs embed efficiency in everything they do, whether it’s fleet commonality, turnaround times, or tech-enabled distribution options.

FSCs have traditionally emphasized premium service. However, in today’s margin-sensitive business world, embedding process discipline is essential for survival. It’s crucial for FSCs to break the myth that efficiency dilutes service; rather, it creates sustainability.

The Future of Aviation

🌍 My Personal View: Hybrid Models Emerging

The future will continue to see hybrid models emerging. Successful FSCs won’t simply mimic what LCCs are doing, nor will they cling to legacy pride. Their mantra will be to find the balance point: premium where it matters and efficient where it counts.

The lesson I learned while working with FSCs is clear: agility and relevance will continue to be the winning combination.

Conclusion

In conclusion, the aviation industry is evolving. Full-service airlines must learn from low-cost carriers to stay competitive. By embracing simplicity, agility, and efficiency, they can enhance customer satisfaction and improve their bottom lines. The journey ahead is about finding the right balance in service offerings while adapting to changing market dynamics.

As the industry continues to evolve, it will be fascinating to see how these lessons shape the future of air travel.

---wix---