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Are the airline companies low cost a threat for the traditional companies?

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  1. Introduction
  2. Changes in the luxury sector
  3. The luxury of exclusive and accessibility
  4. Origin and history - Luxury
    1. History of luxury
    2. Product specifications of Luxury
    3. A perfect product
    4. Attractive packaging
    5. A strategic price
    6. A distribution study
  5. An elitist voluntary communication
  6. The causes of this change include the following - democratization of the sector
    1. The financial causes
    2. The sociological causes
    3. The causes related to innovation
  7. The paradoxes through the 4Ps
    1. Price Paradox
    2. Product Paradox
    3. Paradox of distribution
    4. communication paradox
  8. Luxury in the 21st Century
  9. The exclusive luxury of the People
  10. The new luxury
  11. Focus on the brand
    1. Presentation
    2. All attributes
    3. All benefits
    4. The set of values
    5. A culture
    6. A personality
    7. A user profile
  12. The luxury brand
  13. The dangers
    1. The first danger comes from consumer products
    2. The second danger comes from the proximity between the management of luxury and the mass distribution
    3. The third and last danger for the overexposure and trivialization of luxury
  14. The evolution of marketing strategies of luxury
  15. Tools
    1. The extension of the range, the variation
    2. The line extension, diversification
    3. From co-branding to masstige
    4. The accessorization of luxury
  16. Marketing Mix
    1. The product
    2. The price
    3. Distribution
    4. Communication
  17. Internet and luxury
  18. Investing networks of influence
    1. internet: luxury and affinity
  19. Consumer expectations
  20. The Internet media at a glance
    1. Internet is
  21. Investments of luxury growing on the web
  22. Internet users in the high income group
  23. Luxury and the internet
  24. Rules to follow
  25. Understanding social media
  26. Differences in methods of traditional Media
  27. Writing for social media
  28. According to the Social Media Guide, to be forceful with social media, you must
  29. Types of Social Media
    1. Social networks
  30. The value of social networks for luxury brands
  31. Major social networks
    1. Facebook
    2. LinkedIn
    3. Service
    4. MySpace
  32. Facebook, the first social network
  33. Attracting fans on my Facebook page
  34. Communities of content
  35. The main communities
    1. Sharing
    2. Share videos and photos
    3. Document sharing
  36. YouTube, one of the most visited of the world
    1. Example Campaign
    2. The microblogs
  37. A few statistics
  38. Here are some examples of what he can do on Twitter
  39. Luxury brands increasingly present on twitter
  40. Blogs, the new mouthpiece of luxury
  41. Which blogs are targeted?
  42. Blogs: often the source of a buzz
  43. What is the buzz
  44. What is the trash attitude?
    1. The trash today
    2. Trash and luxury
  45. A new approach, glam trash
  46. The example of the glam-trash of the Louis Vuitton
  47. Measure the effectiveness of its campaign
  48. Follow the buzz
  49. How to measure the phenomenon of buzz?
    1. Google Alerts
    2. Google Blogsearch
    3. Google trends
    4. Wikio
    5. Technorati
    7. MonitorThis
    8. Samepoint
  50. Social Mention (Alerts and Social Mention)
    2. TweetScan (and email alerts Twitter)
    3. Tweetbeep
  51. Twitrratr
    1. Twitter Search
  52. ROI measurement of the commitment of my brand in social media
  53. The measure of progress
  54. Application on Twitter
  55. Measurement tools from the Social Media Guide
  56. Measurement tools of engagement
  57. Illustration: Louis Vuitton BITCH
  58. Analyze
  59. The perfume market
  60. Competition
  61. SWOT
  62. Aims
  63. Targets
  64. Positioning
  65. The 4 Ps
  66. Budget Analysis
  67. Conclusion

Currently, air transport is a dynamic and growing sector but it remains very sensitive. Indeed, economic cycles and the uncertain geo political contexts control the level of air transport activity. The growth in the sector is outstanding, because in the long term, the airlines do not release sufficient operating margins.

Since 2001, there have been one crisis after another and the profitability of companies is very sensitive mainly due to various increases in oil prices and terrorist attacks. Moreover, in order to survive in the long term, airlines are safer, more environmentally friendly and above all offer products and services, they are always adapted to the demands and diverse requirements of consumers.

It is found that the airline industry has managed to adapt to the deregulation of air travel which allowed new companies to enter the market. There are currently two main models of airlines in Europe: traditional airlines and low cost airlines.

The traditional majors are companies such as British Airways, Air France while the Low Cost airlines are the companies that are "cheap" and their cost per seat- km is smaller than that of traditional airlines. It must be noted that the low cost airlines have seized their opportunity in Europe.

Thus, the deregulation of air transport has finally ended the monopoly of traditional companies and allowed companies of Low Cost to gain the European position on the market and now represent about 40% of intra-European traffic. One can summarize the business model of these new companies with a strategy: Low Cost (Low Cost), Low Fares (Fares Netherlands) and No Frills (No Services).

These new low cost airline companies have another kind of business plan and try to reduce all their cost. They have big opportunities on the European market because they create new links between cities which are not used by traditional airline because they believe they will not be profitable because they are located far away from big cities.

Another opportunity for Low Cost is there is an economical crisis in Europe, and people want to move but they don't want to pay an airfare, so with their business model, they could offer to people an attractive price on great reputation. For example, a ticket cost 40euros for a round trip from Paris to Barcelona.

In fact, traditional airline leave some destinations and airport because the Low Cost carriers are too competitive on these segments. Furthermore, Low Cost airline attract businessmen because with the economical crisis they reduce the travel budget that is a big opportunity for Low Cost company because they could take traditional airline's market share.

Major airlines like Air France, British Airways, KLM? are present since more than fifty years. They have a really good reputation and is known by everybody for the security and services they offer to the customer. They have a great offer with: short, medium and long haul all around the world.

To reply to this threat, traditional airlines will need to create new subsidiaries to keep their market share and to answer to all the new needs on short and medium haul flights.

With the economical crisis in Europe, the buying power is weakened so they have to adapt their products and services which are too expensive for customers. So, traditional airlines have to strengthen their position on the market in particular, on long haul because the national and international mobility is in turmoil.

Tags: Airline industry, low cost airlines, traditional airlines, threat from low cost carriers

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