The study is based on explaining and giving a picture of strategies the traditional airlines use to compete with the low cost airlines. Since the deregulation in 1992 many low cost airlines have established themselves on Europe´s airline market and have taken over large parts of the market. Air travelers have become price-conscious and always searching for the cheapest ticket. Traditional airlines were outcompeted by low cost companies. In order to claim the market new competition strategies were needed. The purpose of the study is to describe which strategies traditional airlines use especially in terms of service offering to attract customers. Previous research and theories describe competition strategies that focus on service, costs, price, product and Porter´s model. In interviews with people who have knowledge about the airline industry because of their work we got answers about how traditional airlines use competitive strategies with the focus on service. We supplemented our study with secondary literature from the webpages of traditional airlines. The results show that the best strategy for traditional airlines is to use a mix of different service strategies to win loyal clients.

I april 2018 realiserade den svenska regeringen förslaget om skatt på flygresor. Den empiriska undersökningen som samlat material från andra länder inom EU med liknande flygskatter visar på varierande effekter på miljön. Syftet med studien är att undersöka vilket styrmedel mellan en flygskatt och en kvotplikt som medför störst klimatreducering för den svenska flygmarknadens koldioxidutsläpp. Studien tillämpar efterfrågeelasticiteter, korspriselasticiteter och sekundärdata från internationella och nationella institutioner för att estimera flygskattens samt en kvotplikts miljöeffekter på det svenska flyget. Resultatet visar på att en kvotplikt reducerar koldioxidutsläppen till en högre grad än dagens flygskatt. Flygskattens komparerade miljöeffekt härleds till resenärernas förutsättningar gällande substitut, geografiskt läge och överflyttningseffekt på den internationella flygmarknaden. / In april 2018, the Swedish government realize the proposal for tax on air passenger travel in Sweden. The aggregate empirical investigation from other EU countries with similar flight tax application, the investigation concludes inconclusive effects on the environment. The purpose of this thesis is to investigate which control measure of an aviation tax and a quota that result in the greatest climate reduction for the Swedish airline carbon dioxide emission. The thesis applies demand elasticities, cross-price elasticities, and secondary data from international and national institutions to estimate the environmental impact of the airline tax and a quota obligation on the Swedish airline. The result shows that a quota obligation reduces carbon dioxide emissions to a greater extent than today's air tax. The comparative environmental impact of the aviation tax is derived from travelers' conditions regarding substitutes, geographical location and transfer effect on the international airline market.