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THE REVOLUTION OF AIRLINE INDUSTRY

Introduction of Airbus A380

The booming of low-cost airlines

Airlines environmental issues
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 Industrys microenvironment

Industrys macroenvironment
Factors that influence the industry

Value perception: premium vs low-cost

Environmental issues (sustainability)

4Ps (PRIMARY)
Product Price Place Promotion

3Ps (ADDITIONAL)
Process People Physical Evidence
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Transportation: Passenger & Freight

Augmented Products: Customer service In-flight products Loyalty Program Website facilities Plane: Airbus, Boeing, Concorde Airline Operators: Qantas, JetStar etc.
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Air-travel fares depend on: Type of airline company (low-cost or premium) Services class (economy, business or 1st class) Date and time: festive seasons Route competition A380: USD 375m Boeing 787 Dreamliner: USD 227m

Mass media: TV, radio and newspaper Online: Website and social media (FB page) Corporate: sponsorship and collaboration for tourism events

Quantity: Group purchase and bulk cargo Advance Purchase Excursion Fare Specification Flexibility: seat selection, in-flight services
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Global Market Online Airport: High density cities and high traffic route
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 Pilot, Flight attendants, CS team, technical team, travel agents

Web/kiosk/counter check-in

Airport booth Plane

Demographic Age: baby-boomers Population: frequency of air services utilisation Gender: both males and females Income: single vs dual-income household Travelling purpose: business, holiday, education
Economic Growth: increase in domestic & international trade Currency value: save vs spend Inflation rate: high rates increase pressure on income, fuel prices Global Financial Crisis: recession 10

Technology Information accessibility Research & Development Communication

Competition Brand image Loyalty program Substitute & other opportunity cost: railways, roadways, waterways
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Political & Legal Government policy Conflict & political instability Terrorist attack Aviation industry rules and regulation Social & Culture Contagious disease Overweight & obesity Social & culture event Natural disaster Incident & accident

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Growing markets Increasing income of the middle class Rise of budget airlines Various routes & destinations Experience different cultures Benefit from exchange rate Increased appreciation of time Increased trust in airlines
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People who pay more quality Pay a high price for perceived value of flight Brand Loyalty ( prestige ) Quality, service, facilities Travel for business

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People who pay less: Vacation short distance Low cost Budget constraints Cheapest option to get to destination

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 Carbon emissions - Offset emissions for a fee Noise pollution - Use less noisy engines, change runway usage times

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