European Media is writing daily articles about the situation of the European airline business. The European airline market is, at the moment, with all the important changes and actual turbulences, the most dynamic industry sector. Some of these changes are:
The creation of new low-cost airlines in Europe, like Germanwings (Germany), Volareweb (Italy), and Sky Europe (Slovakia);
The disappearance and bankruptcy of airlines, such as V-Bird (Netherlands) and Swissair;
Air France merges with KLM to become the worlds biggest airline group;
A significant increase of purchases of airplanes by Arabic airlines.
This thesis focuses on the low-cost airlines, which arrived in Europe during the last 10 years and changed micro and macro environment of the airline business. Low-cost airlines like Ryanair and EasyJet make big profits while Alitalia, British Airways, Air France, and Lufthansa are having enormous problems.
The general opinion is that low-cost airlines are successful because of its lower cost in production, and therefore of its lower price they can offer to the customers. The thesis will show that the cost factor is not the only reason for the success of low-cost airlines:
"Being cheap is not enough"
The objective of the thesis is to find other reasons which explain the success of low-cost airlines by analysing the marketing development of European low-cost airlines with its strategies, positioning, customer satisfaction etc. Of special interest: The question how the low-cost trend changes the marketing and the behaviour of the traditional airlines and how do the customers react.
As reaction to this trend the traditional airlines are reducing at the moment costs in salary, distribution, maintenance etc. to survive. This is not enough. The thesis mentions marketing ideas and possibilities of how to compete against low-cost airlines, either by copying successful marketing methods of these airlines or by finding new innovative methods, fresh ideas and a new positioning.
The main objectives for my thesis are:
Is the success of low-cost airlines only a short term event or is it a successful business marketing concept? Are the traditional airlines in danger?
Is the Low Cost concept the better concept? What can traditional airlines learn from the marketing methods of low-cost airlines?
Table of Contents
1. Introduction
2. Aviation History
2.1. The beginning of aviation
2.2. Air traffic regulations
2.3. Airline market before 1993 and National carriers
2.4. From monopoly to Air Transportation Liberalisation
2.5. Airline business today: New competitors
2.6. Change to customer oriented Marketing concept
3. Low-cost airlines versus traditional airlines
3.1. Situation of traditional airlines in Europe
3.1.1. Airline Alliances and hub- and spoke system
3.1.2. Example of a traditional airline: Air France
3.2. Low-cost airlines
3.2.1. A fascinating example: EasyJet
3.2.2. The European low-cost market and development
4. Marketing Analysis
4.1. Scanning the marketing environment
4.1.1 Market
4.1.2. Segmentation of the airline industry
4.1.3. Target market
4.1.4. Motivation and Buyer behavior
4.1.5. Needs, wants and demands
4.2. The Marketing Mix
4.2.1. Product
4.2.2. Place
4.2.3. Promotion
4.2.4. Price
4.3. High performance business
4.3.1. The service character of Airline marketing
4.3.2. Total Quality Management
4.3.3. Internal Marketing
4.3.4. Total Customer satisfaction
4.3.4. Customer Relationship Management
4.3.5. Frequent Flyer Program
4.4. Market-oriented strategic planning
4.4.1. Positioning for competitive advantage
4.4.2. Meaningful Differentation
4.4.3. Brand Management
4.4.4 SWOT analysis
4.4.5. Dealing with the competition
5. Conclusison and future developpement
Objectives and Topics
This thesis investigates the marketing dynamics within the European airline industry, specifically focusing on the competitive relationship between traditional legacy carriers and the rising low-cost airline sector. It aims to identify the strategic factors driving the success of low-cost carriers beyond simple price advantages and proposes marketing strategies for traditional airlines to remain competitive in a rapidly evolving market.
- Evolution of the European airline industry and the impact of deregulation.
- Strategic marketing differences between low-cost and traditional carrier business models.
- The role of customer orientation, service quality, and brand management.
- Marketing analysis, including segmentation, positioning, and competitive strategy.
- Future outlook and adaptation strategies for traditional airlines.
Excerpt from the Book
1. Introduction
European Media is writing daily articles about the situation of the European airline business. The European airline market is, at the moment, with all the important changes and actual turbulences, the most dynamic industry sector. Some of these changes are:
- The creation of new low-cost airlines in Europe, like Germanwings (Germany), Volareweb (Italy), and Sky Europe (Slovakia);
- The disappearance and bankruptcy of airlines, such as V-Bird (Netherlands) and Swissair;
- Air France merges with KLM to become the worlds biggest airline group;
- A significant increase of purchases of airplanes by Arabic airlines.
This thesis focuses on the low-cost airlines, which arrived in Europe during the last 10 years and changed micro and macro environment of the airline business. Low-cost airlines like Ryanair and EasyJet make big profits while Alitalia, British Airways, Air France, and Lufthansa are having enormous problems.
Summary of Chapters
1. Introduction: Outlines the dynamic state of the European airline industry, driven by the emergence of low-cost carriers and significant market shifts.
2. Aviation History: Provides a historical overview of aviation, from its origins and early regulation to the impact of market liberalisation and the rise of new competitors.
3. Low-cost airlines versus traditional airlines: Contrasts the operational and marketing situations of legacy carriers with the innovative low-cost model, using Air France and EasyJet as primary case studies.
4. Marketing Analysis: Offers a deep dive into the marketing environment, covering market segmentation, the marketing mix, high-performance business strategies, and SWOT analyses for major carriers.
5. Conclusison and future developpement: Summarizes the study's findings and provides a forward-looking perspective on how both airline models will continue to evolve and compete.
Keywords
European Airline Market, Low-Cost Carriers, Traditional Airlines, Marketing Mix, Strategic Positioning, Customer Satisfaction, Competitive Advantage, Deregulation, Air France, EasyJet, Yield Management, SWOT Analysis, Brand Management, Hub and Spoke, Internal Marketing.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis examines the marketing differences between traditional "legacy" airlines and low-cost carriers in Europe, specifically analyzing why low-cost airlines have successfully captured market share and how traditional airlines are responding.
What are the central themes of the research?
Central themes include the impact of deregulation on the European market, the evolution of customer-oriented marketing concepts, the necessity of high-performance business practices, and the strategic positioning of airlines.
What is the primary research question?
The research asks whether the success of the low-cost model is a sustainable long-term marketing concept and how traditional airlines can adapt their strategies to compete effectively against these new market entrants.
Which scientific methods are employed?
The author uses a qualitative analysis approach, synthesizing existing industry reports, case study analyses (Air France and EasyJet), and theoretical marketing frameworks like the marketing mix and SWOT analysis.
What topics are discussed in the main body?
The main body covers the history of air traffic regulations, segmentation strategies, the implementation of marketing mixes (Product, Place, Promotion, Price), internal marketing, and strategic SWOT analyses for major industry players.
Which keywords characterize this work?
Key terms include Airline Marketing, Low-Cost vs. Traditional, Strategic Planning, Customer Perceived Value, and Market Segmentation.
How does EasyJet maintain its competitive advantage?
EasyJet maintains an advantage through extreme cost-consciousness, direct distribution via the internet, a clear "no-frills" positioning, and innovative service delivery that meets the specific demands of its target segments.
What does the author suggest for traditional airlines?
The author suggests that traditional airlines must shift toward becoming high-performance businesses, potentially by restructuring hub-and-spoke systems, simplifying distribution, and focusing on "high level where needed and low-cost level where possible."
- Arbeit zitieren
- Nils Kernchen (Autor:in), 2004, Marketing differences between traditional airlines and low-cost airlines in Europe, München, GRIN Verlag, https://www.grin.com/document/34989
