How airlines' marketing strategy changed in a year marked by a price war

Airlines' pricing policies are totally shattered, with all reductions topping 20% for plane tickets being launched by companies in a bid to maintain their market share. Thus, regular airlines have come to "throw" onto the market tickets at prices of as low as 9 euros (no tax included), a fare that one year ago was rarely registered even in low-cost carriers' offers.

Romanian regular airlines, as well as the international ones operating domestically, have adjusted their marketing strategy this year as air traffic has declined by at least 10% since the start of 2009.

Airlines have "thrown" onto the market 9-euro tickets for foreign destinations, tickets as much as three times cheaper for the business class, as well as packages including, beside the return tickets, two nights of accommodation at a five-star hotel.

" (...) Air traffic demand dropped as expected during a crisis year (...). As a reaction to this phenomenon, changing the pricing policy seems the fastest and most efficient method," stated Paula Ardelean, sales vice-president of Carpatair, the main rival of Tarom state-owned carrier on the market of regular airlines, put at 400m euros.

All regular airlines have kept their old price structures, and in parallel added new fares, adjusted to current conditions. The latter led to a 20% reduction in the average fare.

The years of economic growth pushed airlines to buy more aircraft and boost the number of flights to meet rising demand. "Amid the crisis, though, the oversized supply against demand has been dramatically felt. This has led to a tight competition between operators to maintain their market share and to a war of prices," Ardelean specifies.

Air France KLM has put up for sale several 589-euro return tickets on the Bucharest-New York route. "Price policies needed to be adjusted to market conditions to attract customers. Whereas last year there were price cuts for short periods, these offers are now coming for longer periods and at a higher frequency," stated Alexandru Dobrescu, the company's general manager.