Airline marketing in regulatory context

The regulatory framework affects airlines’ marketing. As liberalisation proceeds marketing activity can be more widely based than under previous regimens, and now includes more possibilities in the product mix and price differentials. Cost issues and competitive pricing practices still prompt regulatory concern where monopolistic features arise. Such is the case with slot restrictions and the formation of alliances that may ultimately restrict consumer choice. Specialisation by sector and segment allows market entry for emergent airlines with lower costs, of which labour predominates. Pressure for cost reduction raises the possibility of the virtual airline but customer orientation suggests an overriding concern for safety and the integrity of the airline brand. The article complements another on developments in airline marketing.