How airlines have been effected by the economic recession and how they Essay

How airlines have been effected by the economic recession and how they adapted - Essay Example ironment of cutthroat business, the company must adapt dynamic strategies within the broader paradigm of ethical consideration which would meet the shrinking pocket of the customer. At the same time, the strategic plans must also ensure comfortable margin of profit for the companies. Hence, airlines are being creative in the following ways: Dynamic pricing as per the demands of the customers have become the most common strategy of the airlines. Low fare strategy and giving fringe benefits with higher fare has become popular as it attracts not only those customers who work within the defined budgets but also the premium class who an afford extra. Interesting some airlines have also started offering different classes like business class, executive, economic and premium economic depending on the legroom and extra facilities like free drink, enclosed cabin, etc. Customers are being offered innovative packages and arrangement within flights. While some airlines like Virgin offer personal space by allotting front row for business class, others like British Airways is giving its premium economy class more privacy, space and comfort in a secluded cabin. Kay (1995) says that business relationships are linkages that promote organizational growth. Airlines are evolving new ways of earning and seasonal tickets for defined tourist places are being offered at flexible prices. Thus, airlines are also forging alliances with leisure market, corporate world etc. to boost their revenue. In the current times, food and drinks that were taken for granted on long routes have now become charged items. The local airlines and some international airlines have started charging for the food and drinks from the customers. The airlines compensate the financial loss on low fare by charging exorbitantly on eatables on flight. Space allocation or leg room has become a scarce item. The airlines have increasingly been charging customers for extra legroom and for preferred seat like window or