There is a new ULCC network on the block that is set to put European Legacy carriers British Airways, Lufthansa, and Air France into a tailspin. Norwegian and Ryanair will join forces for Europe in 2017. Now the million dollar question is as to whether ULCC Spirit Airlines will jump onboard with the US expansion. If that should occur then this would also place US Legacy carriers: Delta, United and American into a tailspin as well. As this would definitely become a pricing force to be reckoned with globally. These individual airlines alone only offer a moderate impact to their legacy competitors market share since they do not offer global reach which has always hurt them. Business travelers always remain loyal to legacy carriers since they need their global networks and worldwide reach for their business travel. However, once the ULCCs have a unified global network reach, then this becomes a whole new ball game. There are also other low-cost carrier add-ons that they can continue to grow this network such as Air Asia and Jet Star Australia.
This could be the worst nightmare for high fare long haul mainstay players. They have never dealt with this type of competition in the past. I am certain that major airline Pilot and Flight Attendant unions, as well as Aviation Lobbyist, will be pulling out all the stops with the new Trump administration. It will be their hopes of shutting this down if at all possible. Yet, it was only a matter of time for the industry. This has been a long time in the making and this will be part of the final aviation road map of the future. There will be only 4 options in this final global aviation end game. The Delta / Air France Sky Team, The American / British Airways One World, The United / Lufthansa Star Alliance and the ULCC Network of everyone else name TBD. Any airline that doesn’t fall into one of these four groups will not be able to compete and will soon fade away into the sunset. This has long been predicted for some time. This bird has already flown out of Pandora’s box and there will be no putting her back inside. It will definitely be an interesting aviation story to watch as it continues to unfold over 2017.
Link: The Telegraph UK Article