<p>Nowadays, the European airline market is characterized by two major different airline business models; the full service airlines and the low cost airlines. Secondary, appeared for the first time in 1985 in form of the Irish low cost carrier Ryanair. In recent days, the European low cost market stands out through its growth potential and high competitiveness. Therefore, startup companies aiming to join the wave of success as well as insolvency of newly established airlines are part of the daily occurrence. The challenge, that established low cost airlines are faced with, is to create competitive advantages against new entrants and direct competitors under the circumstances of environmental changes. In addition to the described problem a model was developed in order to picture the situation. This paper aims to provide an answer to the specific question: How do low cost airlines use relationship marketing in order to enhance, maintain and attract new customers? The second step is to figure out how those tools affect the airlines generic strategy. The purpose of this study is to find out how low cost airlines in Europe deal with tools of relationship marketing and what are the effects those tools have on generic strategies. This thesis is based on a case study within the European low cost airlines market, with a special focus on three airlines: Ryanair, EasyJet and Air Berlin. These questions are addressed using information obtained in interviews with respondents from the airlines that were recently conducted in Brussels and Bremen by personal interviews and additionally by telephone interviews and email contact. The results show that relationship marketing tools are used in a different extent by the airlines. The authors could not find evidence that using relationship marketing tools is the single solution to compete more successfully than without. It is further argued by the authors that RM is just one aspect strengthening the generic strategy in order to gain sustainable competitive advantage.</p>

Nowadays, the European airline market is characterized by two major different airline business models; the full service airlines and the low cost airlines. Secondary, appeared for the first time in 1985 in form of the Irish low cost carrier Ryanair. In recent days, the European low cost market stands out through its growth potential and high competitiveness. Therefore, startup companies aiming to join the wave of success as well as insolvency of newly established airlines are part of the daily occurrence. The challenge, that established low cost airlines are faced with, is to create competitive advantages against new entrants and direct competitors under the circumstances of environmental changes. In addition to the described problem a model was developed in order to picture the situation. This paper aims to provide an answer to the specific question: How do low cost airlines use relationship marketing in order to enhance, maintain and attract new customers? The second step is to figure out how those tools affect the airlines generic strategy. The purpose of this study is to find out how low cost airlines in Europe deal with tools of relationship marketing and what are the effects those tools have on generic strategies. This thesis is based on a case study within the European low cost airlines market, with a special focus on three airlines: Ryanair, EasyJet and Air Berlin. These questions are addressed using information obtained in interviews with respondents from the airlines that were recently conducted in Brussels and Bremen by personal interviews and additionally by telephone interviews and email contact. The results show that relationship marketing tools are used in a different extent by the airlines. The authors could not find evidence that using relationship marketing tools is the single solution to compete more successfully than without. It is further argued by the authors that RM is just one aspect strengthening the generic strategy in order to gain sustainable competitive advantage.

Service quality is an integral part of the product/service offering provided to a customer. Along with continuously identifying customer expectations and perceptions about service quality, it is imperative for service providers to also investigate whether the service quality increases customer satisfaction and their behavioural intentions. This PhD study theoretically contributes by evaluating one comprehensive service quality model, SERVQUAL designed by Parasuraman et al. (1988), for its potential applicability. The study further contributes by identifying a gap in the literature that the original SERVQUAL model does not entirely represent LCC service quality therefore, LCCSQUAL is proposed: a revised conceptual model with twenty-five variables that reflect the industry-specific attributes of LCC services in the Middle East. LCCs became a common feature in the West after the appearance of Southwest airline in 1971, however in the Middle East; LCCs are a relatively new phenomenon. LCCs are growing rapidly due to the current development of the aviation industry, deregulation and open skies policies in many parts of the Middle East. Most research to date has focused on LCCs in Western or Asian culture, whereas limited research has been conducted in the Middle East region, hence, this study will focus on highlighting the historical development of the Middle East’s aviation industry and the phenomenal growth of the region’s LCCs. This research is first of its kind in the Middle East to be conducted on the LCC service quality as well as in a new cultural background and therefore, it is important to consider that passengers’ are influenced by their culture while making decisions, however; the original SERVQUAL model developed by Parasuraman et al. in (1985) does not include culture as one of the influences in consumer. This PhD study, therefore, bridges another gap in the knowledge by testing the LCCSQUAL in Middle Eastern culture. This PhD followed a multi methodology using both inductive and deductive approaches consisting of qualitative (interviews and a focus group discussion) and quantitative (a self-administered survey questionnaire) methods at Dubai International airport, which has a dedicated LCC terminal. A total of 540 questionnaires was distributed; however, only 516 were finally employed for quantitative analysis. For qualitative analysis, nine in-depth interviews with senior executives of LCC airlines and seven LCC passenger interviews was conducted along with one focus group interview with seven Emirati ladies, first time LCC travellers. Content analysis and NVivo 10 were utilised for qualitative findings and descriptive analysis, Spearman’s rank correlation, factor analysis and cross tabulation were employed to examine the quantitative results. Comparing the results of both methodologies indicated that, passengers experienced wider gaps in the tangibility, reliability and responsiveness dimensions of LCC service quality in the Middle East. The findings of the study concluded that LCC passengers have higher expectations of the LCC services due to receiving luxury services for a long time in the Middle East region. The revised model; LCCSQUAL was tested in the Middle Eastern culture with additional variables and is recommended to be further developed to be culture and country specific. Factor analysis results also highlighted that there are gaps between the expectations and perceptions of the passengers travelling with LCC. This study concludes with several recommendations to LCC management, such as, on-time performance, well-trained staff and crew members, providing clear information to the passengers and providing quality services with low fares.

In the first chapter is defined the fundamental concept of low cost airlines. Second and third section is dedicaded to history, creation and sequential developement of theese carriers and as well their characteristics. Following part is attended to airline traffic and its importance for tourism. In the last most extensive section, is analysed the influence of airline industry on tousim in the Czech Republic, at firts in general view of low cost carriers and tourism and further is this influence searched and analysed through three concrete airlines and four chosen regions.

The diploma thesis deals with the marketing strategy of low cost airlines. The theoretical part describes low cost air transport and also define marketing tools. The practical part is focused on the low cost airline Wizz Air. In practical part of the work is included a questionnaire survey. Based on the findings, were proposed possible marketing improvements for Wizz Air airline.

Thesis (MBA)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: The emergence of low cost airlines (LCAs) has attracted attention from passengers, competitors, the public, and researchers alike. It seems prodigious that LCAs prosper in today's time of economic downturn and are therefore able to counter the industry's trend. lATA's member airlines have accumulated losses of $31 billion since the beginning of the new millennium. Furthermore, industry icons such as American Airlines and British Airways are fighting for survival while some, namely Air Canada, are on the edge of bankruptcy: a fate which others, like Sabena, have not been able to escape. However, the low cost business model has triumphantly entered the aviation market since the deregulation of the markets in the U.S. in 1978. Low cost airlines like Southwest Airlines and Ryanair not only achieve double-digit profit margins, but also have the highest market capitalisation of the industry. This thesis examines the reason for the success of LCAs in the U.S. and EU. LCAs operate with a much lower cost base than most carriers, especially the major hut-and-spoke (H&S) airlines. The low cost business model aims at increasing both aircraft and staff productivity. It also simplifies the sequence of operations workflow and pricing structure. The thesis gives special consideration to the cost structure of LCAs. The advantages of LCAs lie within the areas such as labour, seat density, and distribution. The second objective of this thesis is to evaluate the development of LCAs and consider the implications for the European transport industry. Whereas American LCAs have operated for more than twenty-five years, the boom of their European counterparts did not commence until the end of the 1990s. Ryanair and easyJet have growth rates of more than thirty percent. The author agrees with the expectations of aviation experts that LCAs will grow until they serve approximately a quarter of the market; hence, the business model of low cost is sustainable. However, only three to four low cost airlines will survive the fierce competition in Europe. / AFRIKAANSE OPSOMMING: Die dringendheid van lae koste lugrederye (LKL'e) het die aandag getrek van passasiers, mededingers, die publiek en navorsers. Dit is vreemd dat LKL'e floreer in die huidige ekonomiese afswaai en gevolglik die tendens van die industrie teenwerk. Lugrederye, wat lid is van "lATA" , het sedert die begin van die eeu verliese gelei van 31 biljoen dollar. Daar teenoor is industriele ikone soos die Amerikaanse en Britse lugdienste (American Airlines and British Airways) besig om te veg vir oorlewing, terwyl ander soos die Kanadese lugdiens (Air Canada) op die grens van bankrotskap is: 'n ramp wat sommige soos Sabena nie kon vryspring nie. Sedert die deregulering van die lugvaart in die VSA in 1978 het die lae koste besigheidsmodel egter die mark triomfanlik betree. Lae koste lugrederye soos SuidWes lugdiens en Ryanair ervaar nie alleen dubbel-syfer wins-marges nie, maar het ook die hoogste mark-kapitalisasie in die industrie. Hierdie verhandeling ondersoek die redes vir die sukses van LKL'e in die V.SA en E.U. LKL'e werk teen 'n baie laer koste basis as die meeste vervoerders, veral die belangrikste "hub-and-spoke" lugrederye. Die doel van die lae koste besigheidsmodel is om beide die vliegtuie en die personeel se produktiwiteit te verhoog. Dit vereenvoudig ook die volgorde van prosedures, werkvloei en prysstruktuur. Hierdie verhandeling gee spesiale aandag aan die kostestruktuur van LKL'e. Die voordele van LKL'e lê op die gebied van arbeid, sitplekplasing en verspreiding. Die tweede doel van hierdie verhandeling is om die ontwikkeling van LKL'e te evalueer en te kyk na die invloed op die Europese vervoer-industrie. Die Amerikaanse LKL'e word reeds vir meer as vyf-en-twintig jaar bedryf terwyl hulle Europese eweknie nie 'n opswaai voor die einde van die 1990's ervaar het nie. Ryanair en easy Jet het 'n groei getoon van meer as 30%. Die argument is dat volgens lugvaartkundiges die LKL'e sal groei totdat dit ongeveer 'n kwart van die mark bedien; daarom sal die lae koste model die beste oorleef. Nogtans sal slegs drie of vier van die lae koste lugrederye egter die hewige kompetisie in Europa oorleef.

My thesis is focused on the comparison of traditional and low-cost air companies and its perspective into the future. The theoretical part is focused on a description and an analysis of air traffic both in the Czech Republic and in the world from the history till the present time. The practical part describes an analysis of services provided at the airport Praha Ruzyně. There is also introduced a company České aerolinie as the biggest air carrier on the Czech market. The attention is also given to a general low-cost model of this type of carrier. According to a current high competitive strength I made a comparison of traditional and low-cost carriers and thanks to a questionnaire inquire I suggested the recommendations contributing to production improvement.

The master thesis is focused on the area of low-cost aviation in Europe. Discusses the economics of air carriers and analyzes statistical data on which compares the functioning of selected carriers. In submitted paper there are simultaneously analyzed the destinations network and selected European routes for particular air carriers. Analyses are supplemented by proposals for future possible ways to improve the functioning of the economy. In conclusion is proposed the new model of low-cost air carrier, which is based on a new system of pricing of tickets.

The theme of this thesis is the air transport and its dramatic and dynamic development in the last twenty years. The key driving force behind this change was the deregulation of air agreements and liberalization of international markets, which took place in the seventies in the USA and in the nineties in Europe. This work addresses specific and general effects of deregulation and the development of air transport industry and aims to identify and analyze changes of its structures in space and time. One of the major and direct impacts and consequences of deregulation is that the free market allowed the emergence of new low-cost airlines, which significantly changed the structure and trends of air transport. The changes allowed for greater mobility of people, goods and capital, and also caused a partial change in consumer behaviour of individuals and institutions, and even more interconnected global economy. The source of data and information are primarily articles in professional journals written in English. Knowledge from particular analysis and research approaches to air traffic from the first part of this work is confronted with empirical research. This was based on the statistical data of air traffic in Germany, for each airport from 1991 to 2010 and verified the theoretical concepts of the general...

Reporting of sustainability has gained an increasing importance over the past years and companies have begun to take greater responsibility for society. One major reason why sustainability has been recognized is because of the increased climate change in the world. The airline industry, which is seen as an important part of today's tourism, have had a major impact on the social, economic and natural surroundings, which is an contributing factor to today's climate change and air pollution. Airlines can be divided into two categories, low-cost airlines and traditional airlines. These two airlines separates each other by their business ideas and strategies, where low-cost airlines target price-sensitive travelers while traditional airlines are known to have a larger price advantage over the low-cost airlines. Different strategies can lead to separation of the sustainability reports, as companies work in different ways, which has consequences for how they report their sustainability. This is a problem as companies take different social responsibilities. The purpose of this study is to describe and analyze how sustainability reporting differs between airlines that use different business strategies, by comparing two low-cost airlines with two traditional airlines. The authors first examined already existing theory that has been collected and compared to the companies' sustainability reports. The conclusions of this study have shown big differences between low-cost airlines and traditional airlines reporting of sustainability. An important reason for this is based on the airlines' strategies, where the low-cost airlines apply a low-cost strategy and try to gain competitive advantages by having the industry's lowest costs, while the traditional airlines have a strategy to make the flight as comfortable as possible for the travelers, where high quality and service is important priorities for creating customer satisfaction. The different strategies between the airlines mean that they prioritize different things, which are reflected in their sustainability reports. All airlines have shown clear initiatives to achieve a more sustainable world, but in this study, the traditional airlines have always done a little extra in all the three perspectives.