Caselet Code : CLMM007
Publication date : 2005
Subject : Marketing Management
Industry : Airlines
Length :
 04 Pages
Price :  Rs. 100 (Detailed Pricing Info)

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Abstract

The caselet examines the pricing wars resorted to by Indian airline companies to counter the competition and sustain in the marketplace. It discusses the APEX fare schemes launched by various domestic airlines. The caselet talks about some of the innovative promotional schemes that were launched by these companies.


Issues:

» Pricing strategies in Indian airlines industry

»  Sales promotion in airlines

»  Competition as a key consideration for designing marketing strategy

Key words:

Air Travel, Indian Aviation Market, Jet Airways, Air Sahara, Indian Airlines, Advanced Purchase Excursion (APEX), 'Everyone Can Fly' scheme, Discounts, 'Wings & Wheels' Scheme, Online Bid Scheme, Financial Stability, Business Travelers, Price War, 'Steal Buys' Scheme, 'Wings of Freedom'.

Questions for Discussion:

1. Examine the innovative schemes initiated by the three airlines in 2002. Do you think that the promotional programs undertaken by the airlines are likely to increase the customer base and contribute to corporate viability? Is the intense rivalry exhibited through price-cutting (by industry participants) undermining their viability in the long run?

2. What strategies would you suggest for an airline company in the Indian aviation industry to enhance market share and increase user base?

3. What are the various environmental factors that influence the pricing decisions in the airline industry?