The Current Marketing Environment of the Airline Industry in Europe.

2042 Words Feb 11th, 2011 9 Pages
Airline Sales and Marketing

Introduction

This report will evaluate the current marketing environment of the airline industry in Europe. This will involve looking into different area of the airline industry such as deregulation and open skies, current economic conditions, distribution channels, pricing and revenue management. It has been proved that the airline industry is probably one of the most competitive and complex industry in the world. According to Mintel report (2009) in the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. In the leisure market, the availability of large aircraft such as the
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Government have controlled where airlines can fly, and aspects of their product planning and pricing policies.’ They have also had a major involvement in the industry through the ownership of airlines. They have always had a role in regulating airline safety standards, a role that remains important and, principle, relatively non-controversial. For many years, and in almost all aviation markets, government controlled airlines’ route entry and capacity and frequency decisions. In recent years, substantial regulatory reform has taken place, giving carries the challenge and the opportunity of responding to a free economic environment. In describing the system of economic regulation of the airline industry, a fundamental distinction has always been between the regulation of domestic services which are solely under the control of one government, and international services, which require the agreement of at least two. Until relatively recently, almost all domestic travel market were highly regulated. The Agreement replaced and superseded previous open skies agreements between the US and individual European countries. Deregulation is also stimulating competition, such as that from small, low cost carriers. The EU 's final stage of deregulation took effect in April 1997, allowing an airline from one member state to fly passengers within another member 's domestic market. Beyond Europe too, 'open skies ' agreements are beginning to dismantle
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