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

23rd July, 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. [2284 words]

Instantly get access to this article now for USD15.00.

If you're a CAPA member, you can view this article by using the login box at the top of this page.

We accept Visa, Visa Debit, MasterCard, MasterCard Debit and American Express

This report contains the following 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

This report contains the following charts and tables:

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

This is a premium report featured in the following publications:

These publications are included in the CAPA Membership service.

CAPA Help Centre

Forgotten your password?
Forgotten your CAPA Membership level?
Contact us today about a CAPA Membership quote!