Defining The World Carrier

In this series of posts we’re looking at the all the different types of passenger airlines that operate in the world, and narrowing that list down to the most basic types. After doing some research and analysis, we have determined that there are six fundamental airline types. In this post we look at the definition of The World Carrier.

Introduction: Defining the Six Fundamental Types of Airlines

Type 1. The Legacy Carrier
Type 2. The Regional Carrier
Type 3. The Low Cost Carrier (LLC)
Type 4. The New Era Carrier (NEC)
Type 5. The World Carrier
Type 6. The All Business Class Airline (ABC)

Additional Notes on the six fundamental airline types.

Virgin Atlantic LHR

Similar to new era carriers, World Carriers are relatively new comers to the passenger airliner market. As the name suggests a world carrier transports passengers to far flung international destinations around the globe. They are not legacy carriers with international operations. A legacy carrier is an old line airline with BOTH domestic and international traffic. A world carrier does not have a significant (and most times non-existent) domestic short haul passenger flow, and the majority of a world carrier’s traffic is international medium, long, and ultra-long haul.

City states or island nations are naturals for the world carrier. In these circumstances there was never a need for domestic traffic; but there was, and is, a large demand for international destinations. All the big three Middle East carriers are world carriers – Emirates, Etihad and Qatar. Virgin Atlantic is a world carrier. Singapore Airlines, Cathay Pacific, EVA Air are mostly world carriers.

Cathay Pacific based in Hong Kong

Etihad route structure – one big hub and set of spokes

The world carriers are certainly the big boys of international travel. Even though the majority of them are relatively recent new comers to the aviation market they have significantly large operations. Depending on how you define your measurement criteria world carriers rank high, usually within the top 30 airlines in the world. Emirates is the largest of the bunch, and will carrying over 50 million passengers by the end of 2016. Although being of large size they are not the largest type of airline in the world. That title goes to the legacy carriers, followed by the low cost carriers. In defining a world carrier –

World carriers have the following characteristics:

1. World carriers are newer airlines usually having starting operation during the last 30 years (a notable exception includes Singapore Airlines in 1972).
2. World carriers have a route structure of a single large international hub (and its spokes) with a few 5th freedom flights. One notable exception is Virgin Atlantic’s second U.K. hub in Gatwick.
3. Flight distances are predominately medium, long, and ultra-long haul international flights.
4. Geographically, airline operations stem from the master hub /country that administers the international flight network. Frequently (but not always) their business plan is directly tied with their home country’s national interest.
5. A world carrier’s fleet consists mostly of wide-body aircraft for economies of scale, and to support a large passenger load on a global route network.
6. World carriers are split on membership in the big 3 airline alliances – some are in and some are not. They also have partner relationships (outside of the big 3 alliances) with a number of other airlines, which can include U.S. and other legacy carriers.
7. World carriers, like new era carriers, are very focused on elevating the customer experience. This is done across the different cabin classes and they usually market with a premium flight experience.
8. World carriers offer multiple cabins of service (3 or 4) including coach, premium economy, business and international first products.
9. World carriers are similar to legacy carriers and new era carriers in offering higher end travel services, including luxury first class lounges and in-flight services.
10. World carrier pricing structures are very broad with competitive pricing on economy products and premium pricing on business and first class international cabins.

The backbone of the world carrier is the wide-body aircraft. Some world carriers ONLY have a wide-body fleet including Emirates and Virgin Atlantic. A number of world carriers operate the Airbus 380, the largest passenger aircraft built to date. Emirates itself operates 74 of the A380 aircraft with 66 more on order, and they’re largest operator of this aircraft. The A380’s cost efficiency in transporting large passenger loads on long and ultra-long hauls is an integral part of Emirates competitive strategy. Whether this strategy bears out over time is still to be determined and it should also be noted that Emirates is also investing considerably in the Boeing 777X, a third generation long range passenger aircraft.

World carriers also have a comprehensive range of product offering, and frequently configure 3 cabins and sometimes 4 on their wide body jets. The product in the business and first class cabins is ultra-premium in nature and includes extras such as fine dining, private enclosed suites, bars and on some Emirates and Etihad aircraft shower suites. This also extends into the economy section of the cabin where world carriers advertise the premium nature of the food, entertainment and service offered to the passengers.

Virgin Atlantic upper class bar

Emirates advertising describes their economy cabin

The ground services and airport lounges also are a differentiating point for world carriers. The first class (and some business) lounges look more like high end hotels than the usual hospitality facility for resting between flights. Features like private 5 star restaurants, luxury spa’s and treatments, cigar lounges, and blissful relaxation rooms are standard offerings. Even the legacy carriers operating in the high end don’t extend the lavish offerings available on some long haul world carriers.

World carriers are viewed as hostile competition to the large and profitable international operations of the modern legacy carriers. They have redefined long haul international travel, making it more direct, efficient and comfortable. How successful their model continues to be will be determined, but for the 7 or so airlines that are world carriers today they seem to be here to stay.

In our next post we’ll look at what makes an airline an All Business Class Airline.