The air line industry is a unique and fascinating industry. It was described in 1994 by Sir Colin Marshall, Chairmen of British Airways as "the flywheel for the engines of the world industry". Aer Lingus was founded in the 1930's and has been Irelands state airline. Aer Lingus has continued to go from strength to strength. Following the events of September 11th the industry has become exceedingly competitive. To analyze the threats that Aer Lingus are facing I have produced analysed the industry according to Porters framework.
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Aer Lingus has followed three main strategies, that of flight safety, punctuality and Service. Aer Lingus when setting up an appropriate strategy has to look outside the traditional 4'ps of product, price etc. The overriding concern to any passenger is flight safety and time keeping. Therefore Aer Lingus has ensured that its foremost concern is flight safety and so concentrates on flight maintenance to ensure that the planes can keep on time. Aer Lingus has developed and adapted its service to meet the customer's needs which are "simplicity, choice and consideration. Its overriding aim is to become the most punctual airline in Europe.
Aer Lingus has become so successful because it has gone against the norm. The old style air line industry was seen as large anti customer service conglomerate companies. Aer Lingus have targeted both the business and common market sectors at the same time which again is against the norm. They have set reasonable prices and have gone out of their way to give excellent customer service to their customers. As all marketers are aware of it is far cheaper to retain customers than try to gain new ones. Therefore the concentration on providing a good service has meant that they have a high level of customer retention. This has given it a very successful public image and they have reaped in the benefits as a result. .
Aer Lingus has been very successful in its positioning strategy.
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In 1986, Ryanair broke the high fare cartel, which was then operated by the two state airlines Aer Lingus and British Airways in the Dublin-London route. ... Ryanair was competing head to head with many of Europe's biggest airlines including British Airways, SAS, Alitalia, Lufthansa, Air France, and Aer Lingus, by offering an unbeatable package of low fares, on-time flights, high frequencies and friendly in-flight service, Ryanair was continuing to succeed and win increasing public and customer support. ...
In 1986, Ryanair broke the high fare cartel, which was then operated by the two state airlines Aer Lingus and British Airways in the Dublin-London route. ... Ryanair was competing head to head with many of Europe's biggest airlines including British Airways, SAS, Alitalia, Lufthansa, Air France, and Aer Lingus, by offering an unbeatable package of low fares, on-time flights, high frequencies and friendly in-flight service, Ryanair was continuing to succeed and win increasing public and customer support. ...
In addition to Northwest Airlines and Northwest Airlink, the following is a list of airlines that KLM currently has alliance agreements with: Kenya Airways, Aer Lingus, Air Alps, Air Europa, Alaska Airlines, China Southern Airlines, Comair, Continental Airlines, Cyprus Airways, Czech Airlines, GlobalPass, Jet Airways, Lithuanian Airlines, Maersk Air, Malaysia Airlines, Malév, MalmÖ Aviation, Martinair, Meridiana, TAM, Transavia airlines, Ukraine International Airlines, SNCF, and Thalys. ...
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