Marketing differences between traditional airlines and low-cost airlines in Europe

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

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."