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The Impacts of September 11, 2001 on the Aviation Industry's Marketing Mix

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Abstract

This paper discusses the impacts of the September 11, 2001 terrorist attacks on the aviation industry. Specifically, how aviation industry members were forced to alter their marketing mix in response to the events. The four "P 's" of marketing were all modified. The airlines had to change their product (route structures) and their prices. They also had to change their promotion tactics to ease the customer 's "fear factor". Lastly they had to alter the means of delivering their product to the consumer due to enhance security measures (place).

September 11, 2001 will always be considered a turning point in the history of America. The events of 11 September 2001 were unlike any other shock experienced in the history of …show more content…

Cooperation within alliances poses several challenges to managers: the size of the alliance, the need to intensify cooperation and the harmonization and standardization of common processes, and the search for synergies to reduce costs. However, in times of crisis, alliances do not necessarily prevent stiff competition between the partners. At present, five alliances – One World, Star, Wings, Sky Team and Qualiflyer stand out as the core groupings around which other airlines with strong regional networks will come together to form worldwide networks and can be described as global alliances. But they remain fragile creations subject to competing attractions and economic forces. Over the years, several companies have switched from one alliance to another. Austrian Airlines, for example, moved from the Qualiflyer to the Star alliance. Air France has recently floated the idea of creating a Mediterranean alliance with Alitalia and Iberia. To make this three-way deal possible, Iberia would have to leave the OneWorld alliance. Airlines took the various short-term measures that have been described above, but few changed their long term strategies. The network carriers did cut out some unprofitable routes, and reduced frequencies on others. The 11 September

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