Price discrimination strategy of low-cost airlines

Abstract

The main objective of this research was to determine whether the prices of airline tickets increase monotonically over time. The authors analyzed the market share of low-cost airlines during the period after theKeywords: low-cost airlines, price, price discrimination, monotonicity. Strategija diskriminacije cenama low-cost avio-kompanija

Examined in Theory—Applicable in Practice: Potentials of Sustainable Industrial Heritage Conservation in a Contemporary Context—The Case of Belgrade

“…The period between the two world wars, due to the rapid industrialisation of the country, caused industry as an economic branch to become one of the key pillars of the economic progress of the young Yugoslav state, especially after the Second World War when numerous and diverse industrial productions were launched throughout the Socialist Federal Republic of Yugoslavia, according to the socialist principles of self-management [58] (Figure 4). According to the above-mentioned, we can discern seven industrial zones in the territory of the city of Belgrade, three of which are in the direction of the western currents (the highway route in the territory of the city (Highway E75 is part of the pan-European corridor X that connects Norway with Greece)), the city municipality of Novi Beograd, the city municipality of Zemun, two zones in the vicinity of populated areas (the city municipality of Rakovica and the settlement of Makiš) and two zones that extend along the Sava and Danube banks [59] (Figure 5).…”

“…In other words, the industrial heritage of the city of Belgrade, in addition to its architectural and technical value, also has a great social value because it represents an important element in the realisation of its cultural identity. According to the above-mentioned, we can discern seven industrial zones in the territory of the city of Belgrade, three of which are in the direction of the western currents (the highway route in the territory of the city (Highway E75 is part of the pan-European corridor X that connects Norway with Greece)), the city municipality of Novi Beograd, the city municipality of Zemun, two zones in the vicinity of populated areas (the city municipality of Rakovica and the settlement of Makiš) and two zones that extend along the Sava and Danube banks [59] (Figure 5). The decline in the Serbian industry has been recorded since the end of the 1980s and the beginning of the 1990s of the 20th century, when the civil war in the territory of the former Yugoslavia led to the current situation in Serbia's and Belgrade's economy.…”

The Influence of the 4Ps on Passengers' Purchasing Decision-Making: the Case of LCCs

“…LCCs typically use one type of aircraft fleet (Vidović et al2006) with up to 200 seats offering mostly low fares in exchange for eliminating many conventional travelers services (Baker , 2013).The term originated within the aviation industry for airlines with low operating costs or with costs lower than their competitors. Through popular media, the term has referred to any carrier with low ticket prices and limited services regardless of their operating costs (Macário et al, 2007).The concept of LCCs originated in the US (Franke, 2004;Francis et al,2006;Macário et al,2007;Thanasupsin et al,2010;Diaconu & Popescu, 2011;QIN, 2012) with Southwest Airlines at the beginning of the 1970s (Franke, 2004;Srensen, 2005;Strategic Direction, 2006;Macário et al,2007;Bentley, 2008;Button & Ison, 2008;QIN, 2012;Petrović & Petrović, 2015 ;Malighetti et al, 2016). In Europe, the Southwest model was copied in the 1990s (Macário et al, 2007;Cento, 2008) when the Irish company Ryanair transformed into a low-cost carrier business model (Cento, 2008), previously a traditional carrier, and was followed by other low-cost carriers in the UK (Macário et al 2007;Keynes, 2008).…”

“…Ryanair launched by operating a small route between Waterford and London. In 1991, Ryanair applied Southwest airlines model (Vidović et al, 2006;Malighetti et al, 2009;RyanAir, 2015) which made Ryanair the first lowcost airline in Europe ( Rost et al, 2006;Petrović & Petrović, 2015;RyanAir, 2015).…”