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DALLAS - As the years go by, more travel methods are introduced for people wanting to cross the Atlantic Ocean. Less than 100 years ago, the only thinkable transport was by boat. Today, people fly between the United States and Europe on airplanes and airlines designed for almost every type of passenger.
One of the most recent ideas that has revolutionized transatlantic flying is long-haul low-cost airlines (LHLC). These, essentially, pick up the basic idea of continental low-cost travel led by airlines like Ryanair (FR) or Southwest (WN) and adapt it to long-haul journeys.
The task, which seems easy, is far from simple and has already gotten away with a few airlines that have tried it in the past. However, there is one specific carrier that, since its foundation in 2017, has not only succeeded in maintaining itself afloat on low-cost transatlantic flights but also holds the title of one of the most successful companies in this market.
We are of course talking about LEVEL, the subsidiary of the International Airlines Group (IAG), based at the Barcelona-El Prat International Airport (BCN). Airways had the privilege to talk to its Chief Commercial Officer, Lucía Adrover, who played a crucial role in the airline during the harsh times of the COVID-19 pandemic and the Russian Blockade crisis.
LEVEL's Latest Traffic Figures
LEVEL is constantly breaking its statistics year by year since the COVID-19 outbreak. While in 2019 the airline achieved an amazing number of 1.35 million people carried overall, today it is still on its way to full recuperation, having transported more than half a million passengers during the first three quarters of 2023.
However, the surprise arrives when we look at LEVEL's performance in load factor. Load factor is, basically, the percentage of the carrier's offered seats that have been actually sold to customers. In this statistic, LEVEL thrives at 95.4% of seats filled; the highest of the entire IAG group.
What this essentially means is that the company perfectly understands what preferences passengers have when looking for transatlantic flights out of Barcelona. The destinations, flight frequencies, low prices, and low-cost service match the customers' ideas.
Now, the question is, what strategy is LEVEL currently applying to its business model to find it so easy to succeed in a market that has been predominantly controlled by premium and full-service airlines? What are the differences that decide whether an LHLC will or will not survive in transatlantic low-cost flying?
Barcelona, Alone on the Map
"LEVEL's successful route planning and market opportunity identification hinge on several key aspects." said Lucía Adrover, "These include in-depth market research, evaluating economic feasibility, analyzing the competitive landscape, understanding passenger demand, assessing route connectivity, planning effective marketing, and incorporating customers feedback."
It's crucial to stop at one of these aspects: analyzing the competitive landscape. When looking at the route map of El Prat Airport, we find that the 5.7-million city has currently no long-haul airline based at, except LEVEL. Additionally, and especially in South America, the airline has little to no competition on the routes it serves.
This means that the IAG subsidiary has very good control over the demand for direct flights between Barcelona and the Americas. The alternative to these non-stop services to Buenos Aires (EZE), Santiago (SCL), or Los Angeles (LAX) is a two-leg connecting trip, which in this case may not only be less convenient but also often more expensive.
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