Page 13 - CiR State of the Nation 2017 Sample Pages

What are we seeing...
Low Cost Carriers (LCC) now fly 1- of-4 passengers across the globe, with it’s share of market doubling from 12% in 2007 to 25% in 2015
Evolution of Low Cost Carriers (LCC)
State of the Nation 2017
Economic conditions are facilitating the growth of LCC
• increasingGDPanddisposableincomeintraditionally poorer markets is being driven by an emerging middle/urban class looking for ‘experiential’ purchasing, Visa regulations have also been relaxed in these key (Asian) regions.
Market conditions are also favorable
• LCC is driving efficiencies - more fuel efficient aircraft, low ground handling costs, high load factors and seat density. With Crude oil prices rising, these factors will be important for the LCC market as the elasticity afforded by low oil prices is eroded.
...and Airports are meeting this emerging market
• London Stansted have a dedicated LCC concept/purpose built
terminal. Kuala Lampur (KLIA2) and Rome Fiumicino (T2) and Osaka Kansai all have followed suit.
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Source: CIR Business Lounge Global Traveller Report – Low Cost Carriers Review Dec ‘16