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Global Full-Service Carrier Market 2016-2020

Global Full-Service Carrier Market 2016-2020

Outlook of the full-service carrier market

Technavios research analyst predicts the full-service carrier (FSC) market to grow at a CAGR of approximately 3% between 2016 and 2020. Over the last few years, the global air passenger traffic has been increasing tremendously, especially in emerging countries such as APAC, the Middle East, and South America, which is an important growth driver for the FSC market. In the next 20 years, the global air passenger traffic has been estimated to increase at an annual average of approximately 5%, wherein FSCs account for the significant market share of this traffic.

The majority of FSCs cater to the passenger services segment, offering services like meals and in-flight entertainment as part of the cost of the flight ticket. They also provide additional or ancillary services as add-ons at an extra cost. These airlines primarily operate in a hub-and-spoke structure, with central airports serving as hubs. In 2014, FSCs comprised approximately 70% of global air passenger seat capacity. FSCs also provide cargo services to utilize fully their available capacity and expand their market size.

Geographical segmentation and analysis of the full-service carrier market

APAC
EMEA
Americas
In 2015, the APAC region has been the largest revenue contributor to the full-service carrier market with close to 37% market share, and this region is expected to retain its leadership and showcase a CAGR of more than 4% during the forecast period. It is estimated that almost 50% of the global air passenger traffic will originate from the APAC region over the next 20 years.

Competitive landscape and key vendors

At present, the FSC market is marked by the dominance of major international players who have expanded their network and enhanced their market shares. Moreover, with a rise in the demand for air travel from emerging regions such as Asia and South America, and also the increasing competition from low-cost carriers (LCCs), FSCs are widening their market reach by increasing aircraft fleet and flying new routes in these regions.

The leading vendors in the market are -

American Airlines
China Eastern Airlines
China Southern Airlines
Delta Airlines
United Airlines
Other prominent vendors in the market include Air China, Air France, All Nippon Airways, British Airways, China Eastern Airlines, Emirates, Lufthansa, and Turkish Airlines.

Growth drivers, challenges, and upcoming trends: Ancillary revenue

Technavio's analysts emphasize upcoming trends such as the implementation of ancillary revenue measures to earn revenues, which have become an important factor in the commercial success of FSCs.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the full-service carrier market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

What will the market size and the growth rate be in 2020
What are the key factors driving the full-service carrier market
What are the key market trends impacting the growth of the full-service carrier market
What are the challenges to market growth
Who are the key vendors in this market space
What are the market opportunities and threats faced by the vendors in the full-service carrier market
What are the trending factors influencing the market shares of the Americas, APAC, Europe, and MEA
What are the key outcomes of the five forces analysis of the full-service carrier market
Technavio also offers customization on reports based on specific client requirement.

Related reports

Aviation Market in the UK 2015-2019
Global Low Cost Carrier Market 2015-2019
Global Business Jet Market 2015-2019


Press Release

Technavio Announces the Publication of its Research Report Global Full Service Airlines Market 2016-2020
Technavio recognizes the following companies as the key players in the Global Full Service Airlines Market: American Airlines, China Eastern Airlines, China Southern Airlines, Delta Airlines and United Airlines
Other Prominent Vendors in the market are: Air China, Air France, All Nippon Airways, British Airways, China Eastern Airlines, Emirates, Lufthansa, and Turkish Airlines.
Commenting on the report, an analyst from Technavios team said: Ancillary revenue has been an important financial component for low-cost carriers (LCCs) in Europe, North America, and other regions. To compete with the constant entry of new airlines and competition from LCCs, FSCs are aggressively introducing new loyalty reward programs to gain and retain the interest of frequent flyers. FSCs are introducing such new services as a key differentiator to curb the problem of the narrowing differentiation in prices and services between FSCs and LCCs.
According to the report, with an increase in urbanization, there will be a rise in the demand for air travel for personal and business purposes. In 2014, more than 32 million flights carried billions of passengers and 50 million metric tons of freight. We foresee the global economic impact of the aviation sector to be $2.4 trillion annually. By 2030, Tokyo is expected to be the largest city having 37 million inhabitants, followed by New Delhi with 36 million residents. It is also estimated that by then the world will have 41 megacities with a population of 10 million inhabitants each.
Further, the report states that FSCs have been facing high competition from LCCs worldwide. FSCs have difficulty in differentiating their advantages over those of LCCs. This forces them to reduce prices despite providing extra services on-board.

Companies Mentioned

American Airlines, China Eastern Airlines, China Southern Airlines, Delta Airlines, United Airlines, Air China, Air France, All Nippon Airways, British Airways, China Eastern Airlines, Emirates, Lufthansa, Turkish Airlines.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Top-vendor offerings
      • Table Service offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Overview of FSCs
      • Table FSCs based on services offered
      • Table Services provided by FSCs
  • Market landscape
    • Market size and forecast
      • Table Global FSC market 2015-2020 (billion seats)
      • Table Global market share of FSCs and LCCs 2014
      • Table Share of global air passenger traffic by region 2014
      • Table Global air passenger traffic 2015-2020 (billions)
    • Five forces analysis
      • Table Five forces analysis
  • Aerospace and defense supply chain system
    • Table Global aerospace and defense supply chain system
  • Aerospace and defense value chain system
    • Table Global aerospace and defense value chain system
  • Geographical segmentation
    • Global FSC market by geography
      • Table Segmentation of market by geography 2015
      • Table Segmentation of market by geography 2020
      • Table Segmentation of market by geography 2015-2020 (billion seats)
      • Table Segmentation of market by geography 2015-2020
    • FSC market in Americas
      • Table FSC market in Americas 2015-2020 (billion seats)
      • Table Number of airport passengers in Americas 2015-2020 (billions)
      • Table Market share of FSC and LCC seats in North America 2014
      • Table Major FSCs in North America 2014
      • Table Market share of FSC and LCC seats in South America 2014
      • Table Major FSCs in South America 2014
      • Table Major airports in Americas by number of passengers 2013 and 2014
      • Table Major airports in Americas by number of passengers 2013 and 2014 (millions)
    • FSC market in EMEA
      • Table FSC market in EMEA 2015-2020 (billion seats)
      • Table Market share of FSC and LCC seats in Eastern Europe 2014
      • Table Major FSCs in Eastern Europe 2014
      • Table Market share of FSC and LCC seats in Western Europe 2014
      • Table Major FSCs in Western Europe 2014
      • Table Market share of FSCs and LCCs in the Middle East 2014
      • Table Major FSCs in the Middle East 2014
      • Table Market share of FSCs and LCCs in Africa 2014
      • Table Major FSCs in Africa 2014
      • Table Number of passengers in EMEA 2015-2020 (billions)
      • Table Major airports in EMEA by number of passengers 2013 and 2014
      • Table Major airports in EMEA by number of passengers 2013 and 2014 (millions)
    • FSC market in APAC
      • Table FSC market in APAC 2015-2020 (billion seats)
      • Table Number of airport passengers in APAC 2015-2020 (billions)
      • Table Market share of FSCs and LCCs in Southeast Asia 2014
      • Table Major FSCs in Southeast Asia 2014
      • Table Market share of FSCs and LCCs in South Asia 2014
      • Table Major FSCs in South Asia 2014
      • Table Market share of FSCs and LCCs in South Pacific 2014
      • Table Major FSCs in South Pacific 2014
      • Table Market share of FSCs and LCCs in North Asia 2014
      • Table Major FSCs in North Asia 2014
      • Table Major airports in APAC by passengers 2013 and 2014
      • Table Major airports in APAC by number of passengers 2013 and 2014 (millions)
  • Market drivers
    • Table Share of global air passengers by region 2014
    • Table Global air passenger forecast 2015-2020 (billions)
    • Table Major airports by passengers 2013 and 2014 (millions)
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
  • Vendor landscape
    • Competitive scenario
      • Table Key vendors in FSC market
      • Table Market share of major FSCs 2014
      • Table Major FSCs worldwide 2014
    • American Airlines
      • Table American Airlines: Business segmentation by revenue 2014
      • Table American Airlines: Business segmentation by revenue 2014 ($ billions)
      • Table American Airlines: Geographical segmentation by revenue 2014
    • China Eastern Airlines
      • Table China Eastern Airlines: Business segmentation by revenue 2014
      • Table China Eastern Airlines: Business segmentation by revenue 2013 and 2014 ($ billions)
      • Table China Eastern Airlines: Geographical segmentation by revenue 2014
    • China Southern Airlines
      • Table China Southern Airlines: Business segmentation by revenue 2014
      • Table China Southern Airlines: Business segmentation by revenue 2013 and 2014 ($ billions)
      • Table China Southern Airlines: Geographical segmentation by revenue 2014
    • Delta Air Lines
      • Table Delta Air Lines: Business segmentation by revenue 2014
      • Table Delta Air Lines: Business segmentation by revenue 2013 and 2014 ($ billions)
      • Table Delta Air Lines: Geographical segmentation by revenue 2014
    • United Airlines
      • Table United Airlines: Business segmentation by revenue 2014
      • Table United Airlines: Business segmentation by revenue 2013 and 2014 ($ billions)
      • Table United Airlines: Geographical segmentation by revenue 2014
    • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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