The no-frills carriers, through clearly articulated strategies, have
successfully challenged the power and dominance of major carriers, and have
contributed to the identification of a market segment attracted by low air fares
and efficient airline service. The rapid development of Europe’s
‘low-cost’ carriers has found Southwest and Valuejet to be
valuable models to follow. This study is based upon qualitative research with
marketers in the UK no-frills sector. The results indicate differences in the
marketing approach and also the way the marketplace has responded, with the more
traditional airlines embarking upon cost-cutting and alliance strategies.
Regarding the future, as the European airline industry increases in
competitiveness the opportunities for ‘low-cost’ competition
may become restrictive. Further problems, such as those of Debonair and a
reoccurrence of US-style bankruptcies and mergers, could lead to a reconfigured
industry and a higher range of European fares.
Jones, G.
(1999)
‘Low-cost down’
, Air International, March, pp.
148-152
.
2.
Hartley, R. F.
(1995) ‘Marketing Mistakes’,
John Wiley and Sons, New York
.
3.
Proctor, J.
(1994)
‘Everyone versus Southwest’
, Airways, November/December, pp.
22-29
.
4.
Hanlon, P.
(1999) ‘Global Airlines’, 2nd
edn,
Butterworth-Heinemann, Oxford
.
5.
Air Transport Group
(2000) ‘Europe’s Low-cost Airlines: An
analysis of the economic and operating characteristics of Europe’s
charter and low-cost scheduled carriers’,
Cranfield University — College of Aeronautics
, Research Report 7.
6.
CAA
(1998) ‘The Single European Aviation Market: The
First Five Years’,
Civil Aviation Authority, CAP 685, London
.
7.
Mintel
(1999) ‘No-Frills/Low-Cost Airlines’,
Mintel Marketing Intelligence Report,
London
.
8.
Collis, R.
(1998)
‘What fliers would like — and get’
, International Herald Tribune, 16th January.
9.
Travel Trade Gazette
(1998)
‘No-frills airlines prove popular’
, Travel Trade Gazette, 1st April p.
22
.
10.
Air Transport Group, ref. 5 above, p. 85.
11.
Ibid.
12.
Fielding, N.
(1993) ‘Qualitative
interviewing’, in
Gilbert, N.
(ed.) ‘Researching Social Life’,
Sage Publications, London
, p. 135.
13.
Aircraft Economics
(1996)
‘Can Easy Jet become Europe’s Valuejet?’
, Aircraft Economics, March/April, No.
24, pp.
4-5
.
14.
Rigby, R.
(1997)
‘Cheap and cheerful’
, Management Today, August, pp.
52-54
.
15.
Financial Times
(1997)
‘Taking a ticket to fly without the thrills or the frills’
, Financial Times, 22nd October.
16.
Porter, M.
(1985) ‘Competitive Advantage — Creating
and Sustaining Superior Performance’,
Free Press, London
.
17.
Crump, E.
(1997)
‘Virgin Express: Buy low, fly high’
, Airways, January/February, pp.
29-31
.
18.
Chipkin, H.
(1997)
‘Richard Branson talks about marketing’
, HSMAI Marketing Review, Summer, pp.
12-15
.
19.
Financial Times, ref. 15 above.
20.
The Economist (1997)
‘European airlines scan the arrivals hall’
, 27th September pp.
91-92
.
21.
Shaw, S.
(1994) ‘Airline Marketing and
Management’,
Pitman Publishing
, p. 221.
22.
Cobb, R.
(1999) ‘Marketing and Branding in the Travel
Industry: Strategies, Tactics and Challenges’, Financial Times Retail
and Consumer Report,
London
.
23.
Lawton, T.
(1999)
‘The limits of price leadership: Needs based positioning strategy
and long term competetiveness of Europe’s low fare airlines’
, Long Range Planning, Vol. 32, No. 6,
pp.
573-586
.
