Monday, September 11, 2006

Sabre points to birth of new business model for airlines

A new model of airline is emerging as no-frills airlines and traditional carriers around the world increasingly seek to copy the best of each business model.
Speaking at the GCC Low Cost Airlines conference in Dubai today, Nejib Ben-Kheder, president of Sabre Airline Solutions' consulting business, said the new breed of airline was best described as a value-focused carrier (VFC).
Ben-Kheder says VFCs are identified by their focused route networks, simple fare structures, relatively cheap sales and distribution arrangements, limited array of partnerships and streamlined ground operations.
'It's important to note that 'value-focused' does not mean 'no-frills',' Ben-Kheder said. 'VFCs such as Flybe in the UK, JetBlue in the US and Kingfisher in India do offer complete services and could never be described accurately as 'no-frills', but neither would they fit the profile of your typical traditional carrier such as British Airways, Qantas or Singapore Airlines.'
10/09/06 AME Info, United Arab Emirates
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