Most passengers want nothing more than airlines to be on time and offer a hassle-free, clean service. But there are some frequent premium travellers whose expectations are markedly higher. Even on flights of two hours or more, they wouldn't mind paying a premium for extra legroom, the comfort of an airport lounge, accumulation of air miles and tasty food. They require a decent in-flight entertainment. This is where full service airlines come into picture. After low cost airlines, there is other category of airlines which we are looking into is ‘Full Service Airlines’. It is a kind of airline which is usually regarded as having a higher level of service and more features.

Full service is mainly meant for international luxurious travel. They also serve regional routes to smaller destinations through their regional partners. Full service airlines largely fly to large primary airports in major cities instead of serving secondary airports with lower cost and accessibility.

Traditionally, full service airlines have not charged fees for amenities such as baggage, carry-on luggage, booking charges and other amenities. Full service airlines usually distribute their tickets in as many ways as possible (internet, phone, travel websites, travel agencies) as against low-cost airlines who typically focus on internet sales.

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Let’s have a look about how all full service airlines operate including what all high-end services they provide:

More classes & Fewer SeatsMost full service airlines cabins have two or three classes of service and fewer total seats in each aircraft. Unlike LCA, they have many classes like economy, premium economy, business and Fist class. Seat size and available seat pitch is typically more generous. For example, Delta (full service airline) has 124 seats in its Airbus A319 aircraft, whereas Frontier (a low-cost airline) employs 136 seats in an identical A319.

Long-Haul /Short-Haul DistanceFull-service airlines mainly focus on long-Haul fly. Some of these airlines establish a low-cost carrier subsidiary in parallel to the airline’s own short-haul operations. For example a number of Full-service carriers (FSC) like Asiana, Air India, Malaysia Airlines and Singapore Airlines (Tiger and scoot) establish their short-haul subsidiary. Lufthansa is also the prime example of this which has many regional subsidiaries viz; Lufthansa regional and Germanwings.

Turnaround TimeThe turnaround time for a short-haul flight is defined as the time for an aircraft to complete full off-loading, loading and where required, catering and cabin cleaning procedures (International Air Transport Association, 1997). For long-haul flights, the time including comprehensive technical and cabin services should be considered instead. The less the turnaround time, the more efficient an air craft can be.

Hub-and-Spoke SystemThere is also hub-and-spoke system which many airline carriers follow. Here planes are channeled into a couple of major connecting airports before branching out to their final destinations. This allows more geographic coverage.. Full service airlines have one or more large hubs through which most of their flights are routed in order to create connections and opportunities for its passengers

Code-Share Agreement Full service airlines are also more likely to have interlined agreements with other airlines, use codeshares and be members of large airline alliances. There are currently two big global alliances whose member forms code-share agreement between each other.

Star alliance:The Star Alliance is the world's largest global airline alliance, headquartered in Frankfurt am Main, Germany, and led by current CEO Mark Schwab. Its current membership includes 27 airlines which have more than 18,521 daily departures combined. These flights reach 1,321 airports in more than 193 countries, with an annual number of 637.6 million passengers. This alliance offer customers convenient worldwide reach and a smoother travel experience. Lufthansa, Singapore Airlines, Air India, Air China, Swiss, Turkish Airlines are some of the important members of the alliance.

One Alliance:The Oneworld alliance brings together 15 of the world's leading airlines and around 30 affiliated carriers. Together, these airlines operate more than 14,000 daily flights to some 1,000 destinations across the globe. As a frequent flyer member of the partner airlines a passenger can earn and redeem points on eligible Oneworld flights, and extend the rewards and privileges throughout the alliance.Oneworld was the first global alliance to introduce interlines ticketing between member airlines, which means a passenger can enjoy smooth transfers and greater flexibility across the entire network, and

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offers the widest range of alliance fares, making it easier to travel throughout its global network. British airways, Cathay Pacific, Malaysia Airlines, Qatar Airways etc are some of the well-known member of the airway.

Inflight servicesFull service airlines will typically offer more in-flight perks such as a greater selection of food and beverages, wi-fi, in-flight entertainment options and amenities like headphones, pillows and blankets. Unlike LCC (Low Cost Carrier), all these services are not charged additionally.

Loyalty ProgramAirline mileage programs or Loyalty programs are designed to be psychologically attractive, even addictive, to customers. The frequent flyers of the airlines earn some miles on their each ride. Those miles can be utilized to get a free trip or to upgrade the class of travel in future. These kinds of programs encourage passengers to travel by the specific airlines again and again. Almost every airline has their loyalty programs. As we discussed above, even the code-share agreement members have come up with the common loyalty program to benefit their customers.

Airport LoungeA premium passenger can enjoy a quiet, relaxing escape within the airport with a professional environment, personalized services and exceptional amenities like cafes, bar, cyber-cafes, wi-fi, showers suites, conference rooms etc. it is place where a passenger can relax and do their work in peace. These facilities are available at the airport to the first or business class passengers of the airlines. Every Airline has their specific lounge at the airport or a lounge is even shared under the code-share agreement.

Virtual classesBesides the traditional cabin classes, airlines are experimenting with cabin zones where like-minded passengers are seated together. For example, passengers flying Virgin Atlantic’s Upper Class have the option to book a seat in the ‘snooze-zone’, which will locate them at the front of the Business cabin. After takeoff, the cabin lights are immediately dimmed and no meal is offered by cabin staff to allow for maximum sleep time. Instead, passengers can choose to take their meal on the ground in the Virgin lounge prior to take-off. Some Malaysian airlines even created ‘Kids-free zone’ which bar kids younger that 12yrs old in that zone.

On a related note, airlines such as KLM, Finnair, Iberia, and airBaltic have introduced social seating schemes that allow passengers to pick seatmates with similar interests before their flight by linking their Facebook and LinkedIn profiles to their seat number.

Branded amenitiesAirlines are increasingly teaming up with successful companies from other sectors to design elements of the passenger experience. Examples include Nespresso coffee served in First Class on SWISS or Bose headphones in First on many airlines. Korean Air has teamed up with Absolut Vodka for its A380 onboard bars, while Delta has partnered with Westin Hotels to offer passengers in Business an in-flight version of Westin’s ‘Heavenly Bed’ pillows and comforters.

Inflight SalesDuring the journey passengers can buy last-minute gifts or branded products for themselves with less than high street prices. Passengers can select products to order from the airline’s magazine or their

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website. However, due to space restrictions, inventory may be limited onboard. Goods sometimes need to be pre-order to guarantee its availability.

Qatar Airways, who has received ‘Best Inflight Retailer Award’, has an exclusive collection of the best-selling duty free products. There are number of products available like inflight duty-free magazines, collection of fragrances, cosmetics, skincare, watches, Jewellery, fashion accessories, toys, and Qatar Airways memorabilia.

CATHAY PACIFIC AIRWAYSCathay Pacific is one of the world’s largest airlines who have received awards for their customer service and inflight retail. In 2010, Cathay Pacific has also become the world's largest international cargo airline. The airline has received ‘World’s best Airlines’ awards for the fourth time in 2014 form Skytrax-world airline awards. It was founded in 1946 by American Roy C Farrell and Australian Sydney H de Kantzow in Shanghai, China. Later its headquarters was moved to Hong-Kong.

The Cathay Pacific Group, including its subsidiaries Dragonair and Air Hong Kong, now operates more than 150 aircraft to some 130 destinations across the globe. Cathay Pacific is operating in Australasia, South-east Asia, North East Asia, Middle-east and Indian sub-continent, north and south America, south Africa and selective European regions. The airlines have four classes viz; economy, premium economy, business and first class.

The Cathay Pacific fleet of 146 wide-body aircraft is one of the youngest in the skies. As of August 2014, the average age of the fleet was 8.5 years. The airline is committed to operating a modern, fuel-efficient fleet and has 85 aircraft on firm order for delivery up to 2024. Currently they have a fleet belonging to Boeing 777 family, Boeing 747-400, Airbus A340-300 and Airbus A330-300.

Cathay Pacific is a founder-member of the Oneworld global airline alliance. Entering into codeshare agreements allows the airlines to offer better connections around the world and greater flexibility in planning the trip. Cathay Pacific currently has codeshare agreements with a number of other international airlines, and with Societe Nationale des Chemins de fer Francais (SNFC) on selected rail services from Paris. The airlines are in code share agreement with Qatar Airlines, Malaysian airlines, Japan Airlines and many more for specific routes. They are also in Joint Operating Service, a co-operative agreement between two-or-more airlines to offer joint services on their specific routes, with Air China, Air New Zealand and Qatar Airways. In this agreement, customers can enjoy enhanced benefits such as codeshare, better connections and frequent flyer services with more earn-and-redeem opportunities.

They have also come up with flight messaging service where the service notifies their customers about the remainders or any change of time in the flight schedule. They have lounge facilities on each of their destinations. The airlines have two frequent flyer programs ‘Asia Miles’ & ‘The Marco Polo Club’. The Marco Polo Club is an exclusive loyalty programme that offers of privileges to most frequent flyers, all design to enhance the journey. Cathay Pacific’s worldwide network and affiliation with Oneworld makes the Marco Polo Club the most powerful airline loyalty programmer in Asia. Asia Miles is a Asia's leading travel and lifestyle rewards programme. A passenger can fly with 25 Asia Miles partner airlines (including Cathay Pacific and Dragonair) to earn Asia Miles towards flight awards, upgrades, companion tickets and other lifestyle awards.

Cathay Pacific Cargo

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Cathay Pacific Airways has grown to become one of the world’s leading international air cargo carriers. Their cargo business has let to the birth of its new subsidiary called ‘Cathay Pacific Cargo’. All of Cathay Pacific’s cargo operations are grouped under its Cathay Pacific Cargo unit. It currently flies to 44 destinations around the world. Cathay Pacific’s cargo business currently accounts for around 21% of its annual revenues, and has helped to build Hong Kong into the world’s busiest air cargo hub. Cathay Pacific Airways recorded double-digit growth in both passengers and cargo in February 2015, boosted by Lunar New Year traffic. The two airlines carried 130,467 tonnes of cargo, a year-on-year increase of 28.8 per cent, though less than the 147,275 tonnes carried in January. They are also into joint venture with Air China Cargo and Air Hong-Kong Cargo, in order to boost their cargo services.

Like Cathay Pacific, Qatar Airlines, Singapore Airlines, Lufthansa etc are some of the largest airlines currently operating all over the world.

Challenges

Apart from high Fuel cost, taxes and airport charges there are many challenges which FSA needs to face. Now-a-days lowcost or budget, carriers have been offering improved services for better yields, as a result FSA are facing threat from LCA. In order to sustain, full-service carriers are also reducing add-on services along with fares to retain market share.

Most of the time flight needs to circle over the busy airport due to congestion on the runway. This not only wastes time but also burns a lot of fuel. This problem is mainly because of the lack of infrastructure. Estimates are that there is about 12% efficiency that could be gained if air traffic control systems worked at their optimum level. And every minute that is saved, reduces fuel burn and emissions. Due to environment impact because of burning fuel, IATA (international Air Transport Association) is aiming to opt for carbon-neutral fuel and also trying to cut the net emissions.

Planes only make money when they are in the air, but FSA follows hub and spoke model which decreases their efficiency to an extent. For example, Planes need to queue up at the hub waiting for cleaning, refueling, and so forth which increases its turnaround time. During peak-time landing at there can be 25-30 planes queuing up at the same time. So, this consumes a lot of fuel and increases the turnaround time of the plane.

Apart from it increasing the efficiency, security both at airport and while flying and searching for alternative jet fuel like biofuels can be major problems which the industry needs to cope-up with it on an immediate basis. It can be said in conclusion that, world’s thirsts for connectivity can only be satisfied by aviation which is growing and will continue to grow in near future.

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Ref:http://www.airlinetrends.com/2013/09/18/beyond-full-flat-beds-and-slim-line-seats-how-airlines-can-differentiate-the-passenger-experience-up-in-the-air/http://centreforaviation.com/analysis/airlines-in-transition-part-3-how-full-service-airlines-are-reshaping-models-to-be-more-competitive-105757http://www.qatarairways.com/global/en/inflight-duty-free.pagehttp://www.staralliance.com/assets/doc/en/about/member-airlines/pdf/Facts_and_Figures_as_of_31MAR2014_Final.pdfhttp://www.staralliance.com/en/about/http://www.oneworld.com/general/about-oneworldhttp://www.worldairlineawards.com/Awards/worlds_best_airline.htmlhttp://www.cathaypacific.com/cx/en_IN.htmlhttp://www.scmp.com/business/companies/article/1739051/cathay-pacific-airways-reports-double-digit-passenger-and-cargohttp://skift.com/2014/10/14/3-biggest-challenges-facing-the-global-aviation-industry/

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