The Effectiveness of the Marketing Strategy Adopted by the Low-Cost Airlines

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The Effectiveness Of The Marketing Strategy Adopted By The Low-Cost Airlines

INTRODUCTION

This research proposal aims to describe a proposed research study that will examine the effectiveness of the marketing strategy adopted by the low-cost airlines in the US and UK and speculate if this strategy will allow them to succeed in the current economic scenario.

If the global recession has hit any industry the hardest, it is the airline industry. The airline industry suffered its largest drop ever in passenger revenue in the year 2009 (www.heraldscotland.com). The global recession, accompanied by high levels of unemployment, hit air travel demand especially hard in 2009," said James May, ATA chief executive and president, in a statement.

As claimed by the Air Transport Association of America, the total passenger revenue for the major U.S. carriers fell 18% in 2009 versus the year before. It is not just the traditional national airlines like the British Airways that are threatened but the low-cost carriers that thrive mainly due to the availability of very cheap fuel and galloping growth in passenger numbers are more in danger than anyone else.

At this time, when the airline industry especially the low-cost airlines is in great need for a strategic plan for recovery from its financial losses, it will be the most appropriate for a research student doing Master’s degree in Business Administration with specialization in Marketing to take up the study on the effectiveness of the marketing strategy adopted by the low-cost airlines and contemplate if the existing strategy will yield the same results as it did during the good times.

BACKGROUND RATIONALE

• The airline industry exists in an extremely competitive market. Airport capacity, route structures, technology and costs to lease or buy the physical aircraft are significant in the airline industry others. • The airline industry remains vulnerable to the rise in fuel prices, climatic...
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