Air Berlin Case

2620 Words Mar 9th, 2013 11 Pages
Financial Management\Air Berlin Case

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Executive summary
Airline industry has been faced with stiff competition due to the increased number of airline companies in the sector. The study will focus on the strategies that are deployed by Ryanair Airline Company, Air Berlin Company and Easy jet plc in ensuring that it meets with the competitiveness in the economy. The strategies for Ryanair Airline include; Low fare, Best Customer service, Short-haul route and destination, Reduction of operating costs, Internet services in its reservation system and Quality management. In the case of Air Berlin airline its strategies comprises of high service standards, blanket coverage, market
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In an attempt to achieve high performances in the competitive economy, the airline industry specializes on the vocational and unrivalled price consideration. Among its long-term strategies that enhance its competitiveness include; high service standards, blanket coverage, market positioning and segmentation, ticket booking, low price considerations, flight connections and safety of the passengers and staff and the overall efficiency in its operations.
High service standards are achieved by the company when it fosters on the how the cabin crew treats its passengers, no charges levied to checking of luggage beyond the specified limits and the disabled passengers are given special treatment. This attracts more customers hence increasing the revenue outlay for the company. In addition, the blanket coverage is met by emphasizing on the airline’s direct departures from the stated regional airports in regard to hub-and-spoke system that is articulated by major airline companies.
Markets are positioned and segmented in such a way that the main customer segments are effectively attained. This customer segments include; holiday travelers, shoppers and corporate clients on business function. In the case of ticket booking, the company reserves two-thirds of the ticket sales to those taking single seats and the rest to tour organizers and tour operators. This is aimed to increase the efficiency of ticket sales and increase sales revenues.

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