New business models have emerged, not only in terms of low-cost operations but also in the form of truly “multi-national” carriers operating across the EU and beyond. Middle Eastern carriers such as Emirates and Qatar Airways on the rise, and are expanding globally.
The rise of low cost airlines such as Norwegian Airlines is seeing airlines expanding far beyond the traditional transatlantic routes. These carriers ‘unbundle’ their product offering allowing lower fares for all passengers, and the benefit of customization of the travel experience for others. Passengers can choose exactly which products and services they need and pay for.
Challenges do exist. Oil prices can cause major changes to profitability. Labor strikes continue to afflict the European Carriers. Supply chain disruptions can impact aircraft manufacturing and daily flight operations. Increasingly, disgruntled passengers are posting their dissatisfaction online, providing numerous challenges to airlines.