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Case
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Reference no. 598-051-1
Subject category: Marketing
Authors: Leo Paul Dana (McGill University)
Published in: 1998
Length: 6 pages
Data source: Published sources

Abstract

Aero-Taxi is a Montreal airline who wants to attract customers who would normally fly with other airlines (eg Air Canada, Canadian Airlines International, Air Atonabee Ltd). Unknown as it is, because of a total lack of promotional support (not even listed in the Montreal Telephone Directory or the Yellow Pages) Aero-Taxi wants to meet competitors head on and to erode their market share. The Airline Deregulation Act, enacted 1978, has facilitated the entry of new airlines into the industry. However, in the US, where competition rather than legislation became the regulator of the industry, 120 of 125 new airlines failed within their first few years of operation. Aero-Taxi got its license to fly in 1988, after the liberalisation of Canadian skies had taken place. A marketing survey indicated that lower airfares and added convenience (eg shuttle between the city centre and the airport), would be the best positioning for Aero-Taxi. The targeted market were Business Travelers, Government Personnel, Residents of Ottawa and surrounded areas and Travel Agents.
Location:
Industry:
Size:
Very small
Other setting(s):
1980s

About

Abstract

Aero-Taxi is a Montreal airline who wants to attract customers who would normally fly with other airlines (eg Air Canada, Canadian Airlines International, Air Atonabee Ltd). Unknown as it is, because of a total lack of promotional support (not even listed in the Montreal Telephone Directory or the Yellow Pages) Aero-Taxi wants to meet competitors head on and to erode their market share. The Airline Deregulation Act, enacted 1978, has facilitated the entry of new airlines into the industry. However, in the US, where competition rather than legislation became the regulator of the industry, 120 of 125 new airlines failed within their first few years of operation. Aero-Taxi got its license to fly in 1988, after the liberalisation of Canadian skies had taken place. A marketing survey indicated that lower airfares and added convenience (eg shuttle between the city centre and the airport), would be the best positioning for Aero-Taxi. The targeted market were Business Travelers, Government Personnel, Residents of Ottawa and surrounded areas and Travel Agents.

Settings

Location:
Industry:
Size:
Very small
Other setting(s):
1980s

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