The Airline Industry Essay

791 Words Sep 13th, 2015 4 Pages
Since 2001, the airline industry has combatted several adverse marketing environments and has come out on top through strong marketing efforts. Subjects of interest in this article consist of competition, macroeconomic factors, and the natural environment. Competition in the airline industry was robust and consisted on a large number of corporations fighting for market share. Macroeconomic factors include the Great Recession that occurred in 2008-2009 which made consumers more budget conscious. The natural environment has been adversely affected by global terrorism and the events that occurred on September 11th, 2001. These three factors will be further discussed in subsequent paragraphs.

In the years following 2001 there has been a lot of consolidation in the airline industry which has allowed for reduced competition and more advantageous pricing power. This power has allowed airlines to build more profitable customer relationships and marketing teams have utilized this to its full potential. Over the past decade there have been five major mergers in the airline industry. According to an article written on the marketrealist.com, a decade ago there were eleven airlines with 96% market share and as of 2014 there were only six with roughly 94% market share. This has caused a shift in the microenvironment marketing strategies of the six remaining companies. The airlines have reduced amenities that cut corporate profits and have raised airfares in response to the reduced…

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