Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Globalization of the airline industry
Evolution of the airline industry
Evolution of the airline industry
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Globalization of the airline industry
Airlines were a hard sell in the start, mainly due to other modes of transportation such as
the train, car, and boat. However, that started to change, as most airlines offered travel additional
flexibility with geographical area and time. In order to sell that flexibility and time, airlines have
to sell their product, travel from one area to another area, with that comes marketing. Airlines
have been utilizing the market strategy for many years during regulation and more than ever after
deregulation. Airlines have used billboards, newspapers, magazines, television, and now the
internet. However, things that will not change are the advertising of the product and the money
earned. Bottom line, “In the eyes of many consumers, every flight is the same beyond the core
variables of time and price—and even the price is often the same, down to the penny, lest one
airline lose market share on a competitive route. Airlines are “maturing as retailers” and are
motivated to find new ways to show off product investments. It’s not just about getting from A to
B. It’s about what are you going to get for that price (Bachman, Justin, 2013) ?”
Like most airlines Delta airlines utilize the most efficient ways of advertising to get the
“word out”. Get the “word out” is not a issue for today’s society, its more about how well that
“word out” is portrayed to the customer. Delta airlines follows the “4 P”’s of marketing Product
Price, Promotion, and Place to market its service. When advertising service several factors
determine the price and demand of the service, which involve economic and cultural factors as
well as other airline competition.
Selling the airline product is not easy, as it is almost like a military recruiter selling th...
... middle of paper ...
...y 16). Evolutionary path for marketing . Airline Bussiness. Flight
Global. Retrieved November 14, 2013, from http://www.flightglobal.com/news/articles/evolutionary-path-for-marketing-322615/
Magno, S. W. (2011). The Shipping Giant. Delta Cargo. White Digital Media Group. Retrieved
November 15, 2013, from http://www.businessreviewusa.com/reports/delta-cargo
Pillsbury, B. (2012, June 08). Innovative Airlines 2012: #3 Delta Air Lines. Airline Trends.
Retrieved November 14, 2013, from http://www.airlinetrends.com/airlines/?airline=Delta
Transportation, U. S. (Ed.). (2013, July 13). Air Cargo Summary Data (Delta Air Lines ).
Research and Innovative Technology Administration (RITA). Washington D.C.,
Washington D.C., United States of America: United States Government Accouting
Office. Retrieved November 15, 2013, from
http://www.transtats.bts.gov/freight.asp?pn=1
Delta Airlines has been a vibrant company in the airline industry, with great success over the years. Delta airlines started as a crops dusting company to serving more than 572 destinations, in 65 countries on six continents (Allan, H., David. H. ,2012). Delta airline moved its headquarters from Monroe, Louisiana to the city of Atlanta, Georgia. The great management strategies have portrayed from time to time to be fruitful even in the verge of a recession. With these consistency in delivery of services, it is clear that the company is out to outdo its competitors and turn out to be the greatest airline in the world.
What comes to your mind when you think about advertising? Is it a television commercial? It is a plain black and white newspaper ad? Or what about a social media app? Advertising has many different communication outlets that can be used to promote a company’s brand, product, or service. By using advertising, a company uses some combination of media to get a message across to customers. Companies tend to use multiple strategies while advertising so that all targeted audiences have a potential to view the ad. Delta Airlines uses many different types of strategies when advertising to its segmented customer base to help capture all media users.
Spirit Airlines has long been considered an unorthodox airline. They, of course, address all four P’s in their marketing strategy; however, they focus a large amount of their effort on price and promotion. They focus on cutting price through “unbundling”. They focus on promotion through taking advantage of social issues and breaking news. Many advertisements and deals promoted by Spirit have given the public a definite shock-factor. Spirit has made two objectives very clear: they are furious at getting the customer the lowest fare possible by any means necessary, and they will similarly use any means necessary to get those potential customers to notice those fares. Such a blatant marketing strategy works. Even going up against some big competition, Spirit finds ways to be competitive and successful in flagrant fashion.
The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.
The airline industry became increasingly competitive with the arrival of the low-cost carriers, such as, JetBlue, Southwest, and Airtran. These competitors were taking customers away from the major airline companies. Delta projected that 40 percent of their customers chose low-cost carriers, which was a higher percentage than any other airlines. During 2002, 80 percent of Delta's New York to Florida market was taken away by JetBlue. Eventually, Delta's monopoly over the Atlanta and Los Angeles route was lost due to the entrance of AirTran and JetBlue. On January 29 2003, Delta tried to segment its market even further when it announced the formation of Song, an independent subsidiary. Song's objective was to provide the same type of no-frills, cut rate service as Southwest and the other low cost carriers. Delta however fell short of its plan and so Song was dropped.
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
Determining the marketing strategy for a massive airline, like United Airlines, is fairly difficult and extremely complex. Why? Because each city, season, route, and time of day will have some minor to major difference in how the airline presents itself. The difficulty in marketing and advertising for an airline is harder than other industries because each airline is selling thousands of different products. At first glance, United is selling flights, and that seems to encompass one product. However, selling a flight from Denver to Tokyo on a Monday is extremely different than selling a flight from Cleveland to Cincinnati on a Saturday night. The people flying that route, the cost, the airplane flow, the services provided, and the frequency/length of the flights all vary greatly from route to route, and the marketing strategies will fall in line with those difference. Although it would be impossible to determine an exact strategies, we will attempt to determine what United attempts to focus on, where they attempt to focus, and what their goals, both long and short ...
In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
The marketing approach of Southwest Airlines is built upon their strong business model. They have successfully managed to target two specific market segments of the airline industry while remaining profitable. Their strategy is simple, to offer frequent non-stop flights with the lowest costs which appeal to both the business and budget travelers. By segmenting their target audience to specific demographics and ticket pricing, passengers know exactly what they are getting for the price they pay.
Southwest Airlines has effectively used a variety of promotional elements in its integrated marketing communications, making it one of America’s largest airlines with 3,300 flights a day to 72 domestic cities. Southwest Airlines has used all four possible elements of the promotion mix: advertising, public relations, personal selling, and sales promotion, but has focused primarily on advertising and public relations to add value to the product offered to customers. Its focus on advertising and public relations is directly related to its large size and it’s nationwide reach. Also, advertising and public relations are the most cost-efficient methods of promotion, and an airline as large as Southwest is forced to have promotional elements that benefit from economies of scale.
Conitue to promote "The Low Fare Airline" slogan especially with the advent of raised ticket prices from Untied.
...leader. Certainly, it has to take into account the implications of completion from both the direct and the indirect competitors. That is why EasyJet centers on the cost management strategy and the differentiation strategy (Hanlon, 2007). Through an analysis of EasyJet Airplane company strategies and performance, it is clear that they are ambitious and strive for the best. They not only survive in an industry that is intensely competitive, as shown through the analysis by Porter's Five Forces, but also succeed in terms of offering their customers the best that they have to offer in terms of value for money. The advantage this airline gains over its oligopolistic competitors stems from flexible ticketing and complete access to all primary routes. However, in keeping airline industry, there is room for improvement and growth as the analysis using Ansoff Matrix reveals.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
The perennial crisis in the airline industry: Deregulation and innovation. Order No. 3351230, Claremont Graduate University). ProQuest Dissertations and Theses,, 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364.
There are other ways in which airlines customers are segmented. The airline services are divid...