British Airways Marketing Policy Free Essay Example, 7000 words

Convergence in airline industry occurs under many parameters like brand merger, operational alliances, network sharing etc. Deregulation in the airline industry certainly made way to the trend of alliances and co-operation between the various airlines companies. ( Current issues arising with airline alliances , 1999). This is may be due to the reason the companies try to achieve cost reduction by economies of scale, also getting access to a greater network side by side. These alliances help the airlines to obtain efficiencies which are normally associated with merger and acquisition. ( Current issues arising with airline alliances , 1999). From the customer s point of view even these alliances are beneficial as they get access to larger route coverage and beneficial aspects of both the allied companies. Though the background and the types of the alliances, which have taken place are different, a tendency is being observed towards a more complete and integral alliance which incorpor ates almost all the aspects of an airline business. ( Current issue arising with airline alliances , 1999) These alliances work in the favor of reducing competition, even as many smaller players merge with a larger company, distinct competitive powers comes into the scenario. We will write a custom essay sample on British Airways Marketing Policy or any topic specifically for you Only $17.96 $11.86/pageorder now Thus it is better in this way. Competition among the players even pushes up the cost factor in many ways. British Airways can be considered as one of the major players along with many others who are visibly serving the same market, like in the case of Singapore Airlines and Ryan air. (Wit, 2004, p. 233). So such alliances may reduce this competition at least at the national and regional levels. It will give mutual benefit to both the parties. The smaller airlines only operating in the national or regional levels will get an access to a larger network and a bigger international brand name, while the larger companies on the other hand will get access to the local market and network. It seems like a win-win situation for both the segments. Also alliances between companies operating hub-and-spoke network will, enhance market power of the network they are operating in.