Air Transport Economics Coursework Example | Topics and Well Written Essays - 1500 words

Air Transport Economics - Coursework ExampleTherefore, it is inherently necessary to implement and adopt the most efficient strategies that entrust help the company to earn maximum profits and sustain among its competitors (Akyuwen, 2011 Varnes, 2010).An effective pricing strategy is very essential in order to attract big volume passengers towards lengthways airlines. Since the company has for once, suffered from financial crisis, it is necessary to set the fares of their aircraft in such a way that the passengers are also benefited and the company also does non incur any loss, i.e. at the point wherein the company can balance its profitability and customer satisfaction efficiently (The Chartered Institute of Marketing, 2015). To be noted, Longways is a small airlines company with many competitors dominating the European market. Thus, it is quite necessary for the company to set competitive prices, maintaining parity with the fare charged by its competitors (Intervistas, 2015). T o be noted in this regard, after the financial crisis, the company is left with only two aircrafts that provides the facility of both delivery class as thoroughly as business class seating arrangements. While one of its aircrafts contain only economy class seats, the other aircraft hosts 50 business class and cc economy class seating arrangements. As the economy class is meant for the common middle class people, the price of the fair should be kept to some consequence lower than that of its competitors fair without compromising the quality of services provided (Knorr & Zigova, 2004). However, the business class is meant for the higher-class people and therefore, the prices may be kept higher, as they would not hesitate to afford a comparatively higher fare. Moreover, this will also help the company to adjust with losses that the company suffered from lowering the price of the economy class (Bloomberg, 2015 Malighetti & et. al, 2009