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Essay on Services Offered By The Airlines And Airports To Target Customers
Around the world, airlines are in deep financial difficulty. Unfortunately, the way back to economic well-being apparently includes a worldwide publicity campaign, with airlines blaming airports for their economic woes, and furious because airports won't go into the tank with them. In the "good old days" of regulation, airlines, airports, and the government regulators and managers of the airspace were a balanced group, managing a system with little room or perceived need for growth, change, or creativity. In a lot of businesses the identification of a worldwide trademark is an advantage.
However with an airline subsidiary trying to attract a customer population that contains a number of passengers alienated by past encounters with the airline itself, the new business's message that this time the product is the right product will find the name recognition to be so much dead weight. As we discussed several months ago when Boeing first was hinting at-and denying--its new high-speed project, the airline business seems to be on the threshold of several developments that will segment the system by aircraft rather than seat row. The Boeing project presents the potential to segment by speed. The ractionals segment by convenience and comfort. Both are high-end draws and both are signs of a mature industry becoming increasingly sophisticated. Ultimately standing in the way, however, is the hardest problem of them all to solve: Infrastructure capacity.
In recent times, low cost airlines have become increasingly high profile. The value for money offered is capturing the public's attention as European flights become more affordable and businesses of all sizes have begun to take advantage of the potential savings. European low cost airlines have learnt much from `no frills' air travel in the US. Southwest Airlines has, in fact, unashamedly been used as a blueprint in the European Market....
