21-06-2005, 07:26 PM
Case -II : There was a time when no airline wud give decent service to City A in US. There were 4 flights in a month from there and charged good money but less services. Plus the flights were notorious to be cancelled in the last min, as pilot decided to bypass City A. Now a guy introduces flights from there and gives quality and get ladies all dressed in eye catching attire, cost is decent and way less than those charged by other players. Went okay for few months untill the big players decide to lower the prices to damn cheap level in order to wash out the new player. What is the way out if u are the manager of this new airline? remember u dnt have enuf cash.
Must say, this case study got better analyzation. You guys are very right in saying that its not by cash that the smaller player can win the race, its by the tactical thinking & infact thats why its not a story but a case study

I esp liked the idea of creating a preference market on one's reppo. Well actually that was what they did. Frankly without asking for patronage, one needs a very dynamic tactical idea, i guess many may use some wrong methods too, as they say, its biz.
Well the City A was infact Texas (!!!) and it dates back to the time whn not much traffic was generated over there. So what this guy did was that he did lower the price a bit, but not that much as big players. Plus he came up with a spl Thank You flight, where the guy availaing it wud pay the original fare, and wud get a thank you momento and likewise cozy treatment. He said it was upon the passengers to avail whatever offer out of two, but if they felt that his airlines really made an impact to get big players also serve better, if they felt it was coz of this airline that they got better and effective service, then they cud give original fare and he wud thank those ppl and give them a momento for their benignity. And he was succesful and later the original player took away the low rates after incurring huge losses and not much customer base gain.