A quick analysis on the market dynamics between the Full Service Carriers (FSCs) and Low Cost Carriers (LCCs) in 2023 based on their frequency and capacity shares reveals that FSCs are dominating the counter parts in almost every region with higher margins expect in the regions where the aviation markets are mature like Europe, America and Oceania.
By Aditya M
Usually frequency and capacity shares are very important factors in evaluating the dominance and market share of the carriers in the markets they operate. The term frequency share defines the rate of frequency with which the particular carrier is operating where as the term capacity share defines that with how many seats or Available Seat Kilometres(ASKs) the carrier is operating with.
Having a broader look on to the analysis, this particular region wise comparison between the FSCs and LCCs was made based upon their operations in 2023. It can be clearly observed from the graphic that FSCs are dominating the LCCs in every region in both the variables frequency and capacity shares.
But on having a closer eye it is evident that the dominance of the FSCs is with higher margins in the Asian and African markets compared to the Europe, America and Oceania. This is because the markets in the Europe, America and Oceania are matured compared to the Asian and African markets, what happens actually in the matured markets is that competition is much higher in those markets leading to the lower fares which the FSCs cannot afford because of their operational margins. Along with this there are a few other concerns yielding this results which are market dynamics, customer preferences, regulations, operational dynamics, fares, air travel demand and routes operated.
One more important key indication that graphic reveals that in every region the capacity share of the LCCs is higher than the frequency shares where as it is inversely proportional in the case of FSCs. The main reasons for this phenomena is that density of the seats in LCCs compared to FSCs and point to point network operations in LCCs compared to Hub and Spoke network of FSCs.
On an overall note this analysis gives the broader view of how the FSCs are dominating the LCCs in every region.
Data Source: OAG
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