Product 4. Place 4.
Master thesis airline industry - Writing Custom Research Papers Quickly and Troublefree
Promotion 4. Price 4. High performance business 4. The service character of Airline marketing 4. Total Quality Management 4. Internal Marketing 4. Total Customer satisfaction 4.
Customer Relationship Management 4. Frequent Flyer Program 4. Market-oriented strategic planning 4. Positioning for competitive advantage 4. Meaningful Differentation 4. Brand Management 4. Dealing with the competition. 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:. 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.
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:. 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.
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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. This is not enough.
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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 creation of these low-cost airlines was provoked by the liberalisation of the European airline market. That is why the thesis will start with the development and history of the European airline business, followed by the analysis of the micro and macro environment and the different marketing concepts between traditional airlines and low-cost airlines.
Afterwards a detailed study of the marketing mix, the internal marketing, customer satisfaction, and different strategies positioning, differentiation etc. The thesis closes with an overview of the future development, a conclusion and marketing propositions for traditional airlines and low-cost airlines. Each fare was considered as an exploit, and aviators were highly romantic and heroic figures.
Aviation was first used as a means of transport for goods and mostly mail. It rapidly gained in speed and autonomy.
Aircraft flew faster, higher and further every day. Air traffic was totally free of any constraints and control. The first commercial flights in Europe took place in , and linked Berlin-Leipzig-Weimar. The fear was that the airmail carriers would merge with each other and form monopolies. For example, in , the U. The CAA regulated fares and decided how many and which airlines could fly between cities.
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Air traffic regulation grew tighter with the development of passenger transportation. Indeed, the CAA regulated the number of flights during a given time period and the airline capacity, or the number of seats available. That was a comfortable situation for the airlines in their home market but it gave them no chance to install in another country. After the second-world war, an airline company was a symbol for modernism. The existence of a national carrier was important for a country's image. As a matter of fact, most international airlines were public companies, owned by the government: Air France in France, Deutsche Lufthansa in Germany, Swiss Air in Switzerland, etc.
Airlines were important for economic and social development and trade. Even today it is still important for a country to have its own airline. The best example is to observe what happens when new countries arise: each new country quickly sets up its own airline. After the fall of communism, the Baltic States created their own airlines Air Baltic, Estonian Air and Lituanian Airlines just after having decided on a flag and a national hymn.
However, even if airlines were already rather numerous, as each country had at least its own airline, this means of transportation were after the second-world war, a luxury reserved for wealthy people and remained so for a long time. Travelling by plane was, indeed, not common and rather expensive. The consequence was that airlines did not have any need to advertise or market their services: their customers, from the upper classes, did not need any inducement to use their services. Destinations were also clearly partitioned between the different airline companies, which did not have to compete for the same markets and customers, therefore not needing any publicity or marketing of any sort.
Even when fares became more affordable to the average customer, the partition of destinations remained, resulting in the absence of real competition between various airline companies. Indeed, regulation and national monopolies resulted in large, lazy and ineffective airlines, where the costs and the prices for the customers were too high.
Airplanes still remained an exceptional means of transportation, used only in exceptional circumstances e. The deregulation started first in the United States when the United States Congress decided in to open and deregulate the airline market. In Europe, deregulation was implemented much later and caused many problems because of national interests of all European countries and the situation of its national airlines.
Therefore regulation took place in three steps , and Today for the European commission it is one of its fundamental goals to create one single market and to create competition. Transport helps to bring Europe's citizen closer, and the Common Transport policy becomes one of the European cornerstones of the Single market. Airline companies began to be a little bit more marketed oriented, advertising their services more aggressively.
However, such competition did not really have a tremendous effect on prices, which remained quite high because of high costs. Flying was still the exceptional transportation means for the average customer. In fact, airlines met one of the first real competitors in the fast trains such as the French TGV or the European THALYS , which would take customers very quickly to a destination, for a far better price, and deposit passengers in the heart of the city train stations are, most of the time, located in the middle of the cities, contrary to airports.
However, such trains do not offer a lot of European destinations and therefore remain a mild threat for airline companies, which offer, on the contrary, hundreds of different destinations in Europe. Air travel has been growing and will still be growing in the next years because of the parallel growth in the tourism industry and world trade through globalisation. The airlines are preparing themselves for the increase of travel.
Soon, the Airbus A with a capacity of passengers will be launched on the market. The increase in traffic is the good news for the traditional airlines. But there is a big threat: A new phenomenon in the place of new competitors. Recently, air travel has undergone tremendous changes over a very short period of time.
Moreover these changes are clearly only the beginning of what appears to be a real revolution and trend. When low-cost airlines appeared on the market, they entirely changed the airline landscape, shaking the traditional airlines to the core. Such low cost airlines were efficient, incredibly cheaper even cheaper than the train , and offered more and more destinations, with surprisingly little inconvenience e. Their swift appearance and unbelievably quick and easy growth took everybody and especially traditional airlines, by surprise.
In the course of merely ten years, low-cost airlines have transformed planes into a casual and common means of transportation, such as the car and the train. The routes of national airlines in or from its home country were the product, which has to be sold.
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The problem was that consumers did not buy enough airline products unless the airline undertook a large selling and promotions campaign. The aim of a selling Marketing concept is to get every possible sale. Airlines started to promote when sales dropped, without first analyzing why sales were dropping. They did not try to change their product to fit the changing market.
soiharlyve.tk They sold harder, pushing their products on the customer through increased advertising. Eventually they disappeared from the market because their products no longer satisfied the customers needs or were subsidised by the government like Alitalia at the moment. Moreover the airlines were focused on technological innovation because they were very often managed by engineers. With every innovation e. Marketing was at that time a secondary issue. The airlines looked for efficiency with disregard for the customer.
The problem for traditional airlines is today that they still create services first, and sell these services through advertising without knowing if there is a need. Some changes started with the hub- and spoke strategy because now foreign customers were attracted to use the hub- and spoke to travel in another country. The attraction was mostly done by interesting prices. The key point is that low-cost airlines exanimate through market research what the customers really need.
If, and only if, the research shows that there are potential customers for a service e. You must make sure you have reviewed your scholarly work before submitting it for assessment. Failing to review your research work may even make your supervisor reject your project or request you to redo it.
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