COMPETITION VERSUS PREDATION IN AVIATION MARKETS. A Survey of Experience .....
- Prior to liberalizatrion, there was litlle scope for predatory behaviour in the aviation market. However, following deregulation, new entrans sought to compete with entrenched incumbents. Low-coast carriers (LCCs) gained significant market share, which in turn provoked many different kinds of defensive response. Having put pressure on established carriers, low-coast airlines are themselves feeling the pressure of competition from new operators.
While it is normal and natural for airlines to react to competition - modifying their services, the ways in which they offer them and their prices - when does aggressive commecial behaviour go too far and become predation?.
This book considers what exactly is meant by "predation" in the aviation environment, and explores the strategies LCCs adopt in order to gain market share, as well as the strategies of the established arilines inn response to competition from new entrants to the market. It also addresses the key questions of what competition policy shoud do to ensure intensive competition.
Competition versus Predation in Aviation Markets brings together contributions from around the world, from airlines, government agencies, leading academisc and consultants, providing a wealth of prespectives on business practice crucial to airline survival.