Low fare carrier ‘summit’ 2004

In an unprecedented move last week, six of Europe’s low fare carriers came together in Iceland to discuss mutual marketing collaborations, including BAA Stansted’s concept for a joint marketing effort to boost business. The ‘summit’, hosted by Iceland Express, Iceland’s first low fare airline clearly marks a historical turn for the industry which has rarely seen co-operation as part of its lean business model.

Air Polonia, Air Berlin, Germanwings, Norwegian, Sky Europe, Iceland Express and a delegation from BAA, focused attention towards making best use of London Stansted’s inbound connections, enabling customers to benefit from a greater breadth of destinations. The meeting was born from statistics which shows that 12% of passenger are using London Stansted as a hub for changing planes to reach their destinations; this figure is on the rise!

Commenting on the growing trend, Geoff Conlon, Business Development Manager at BAA Stansted said. “BAA Stansted wants to help promote low fare carriers by pushing the ‘changing planes’ concept into the limelight, encouraging airlines to drive awareness amongst their customers.”

The dramatic rise in the changing planes trend is a result of the competitive pricing methods used by low fare carriers, who can still undercut traditional airlines operating direct flights. Iceland Express’s recent figures show that 40% of its Reykjavik/London traffic is made up of ‘changing planes’ travellers, as Icelanders take advantage of their premiere low fare service.

Olafur Hauksson, spokesperson for Iceland Express commented. “Our outbound customers are clearly benefiting from the London Stansted link as it provides them with cost effective connections to destinations throughout Europe. This works both ways, so any further collaboration with other low fare airlines will generate business for them as well. At the same time this provides better access to those wanting to travel to Iceland, helping us to maintain our fill rates.”

The Iceland meeting was an effective vehicle to open talks amongst those airlines in attendance, all of whom have agreed to extend discussions regarding collaboration. Promotional activity would mainly centre around web marketing, involving emphasis on search engine results and outlining the routes of other London Stansted based carriers. It would not interfere with the traditional focus of keeping costs down and there has been no talk of adapting schedules or routes. Already as a result of the summit in Iceland, Air Berlin and Iceland Express are jointly promoting the Germany-Iceland link through Stansted at the ITB travel show in Berlin, starting this week.