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Passenger airline industry

- Identify key external factors that affect the passenger airline industry and explain how that impact occurs
- Briefly explain segmentation, targeting, and positioning
- Identify the major airline market segments
- What are the target markets for First Class vs. Business Class vs. Economy Class.
- Contrast Jet Blue vs. Southwest Airlines in terms of the following two aspects:
(1) Compare and explain the impact of key external factors on each company, e.g., economic conditions and the growing consumer interest in leisure travel.
(2) Describe each company's target market and positioning. Give some examples of how these strategies are implemented for each company.

Solution Preview

- Identify key external factors that affect the passenger airline industry and explain how that impact occurs.

The key external factors that affect the passenger airline industry are the economic growth, level of employment, disposable income, fuel prices, political stability, and trade regulations.

If there is slower economic growth the business activity decreases and business traveling decreases. Similarly, lower disposable incomes means people cut down on traveling and this affects the passenger airline industry. When there is political instability, people cut down on traveling to those areas. With fuel price increases, the costs go up leading to upward fares. Lower level of employment means fewer people who have the resources for traveling by airlines. An increase in trade regulations reduces the number of foreign business travelers.

- Briefly explain segmentation, targeting, and positioning

Segmentation refers to the aggregation of prospective buyers into segments. It is expected that the persons in a segment have common needs and will respond In a similar manner to a ...

Solution Summary

The answer to this problem explains passenger airline industry. The references related to the answer are also included.

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