My Account Menu

CAPA Login


Register to trial CAPA Membership!

Airline segmentation - or how to be 'half pregnant'?

23-Jul-2009

Legacy airlines worldwide have adopted varying ways of responding to LCC competition. Now the economic downturn has sapped their most lucrative business customers, the challenge becomes even greater. But, hampered by long-standing union agreements and huge fixed investments in infrastructure, a growing number of carriers are trialling new products within their existing operating structure, in an attempt to segment the market and fend off competitive incursions. [2234 words]

Unlock the following content in this report:

Subheadings:

  • The airline segmentation headache
  • El Al launches “no frills” product
  • Stripping out the basics and charging for them
  • An inspired move, or desperation for a loss maker?
  • Philippine Airlines - EconoLight Class “low fares”
  • CSA Czech Airlines - Click4sky “virtual low cost”
  • India’s Jet Airways – “Jet Konnect” brand under the umbrella
  • Conclusion: Segmentation-fuelled brand confusion

Graphs and data:

  • El Al, Philippine Airlines, Jet Airways and Czech Airlines profits for FY2008/09
  • LCC entrants to Tel Aviv
  • The EconoLight product on PAL’s website
  • The Click4Sky product on CSA’s website
  • The Jet Airways Konnect product on Jet Airways’ website
Please login to continue reading or find out more about CAPA Membership below.
This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.