Airlines’ Pricing Strategy in Context of a Recently Liberalised Market

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(Conference Proceeding)

The pricing strategies reflect the airlines’ business strategies and models. It provides valuable  information to characterize markets’ dynamics and competitive behavior. This paper presents  the results of a study aimed to understand the pricing strategies on a recently liberalized  market.

In 2015, the Portuguese Government liberalized market access to selected airports in the  Azores Islands. The low costs companies – Ryanair and EasyJet, immediately entered the  market. The incumbents companies – SATA and Tap Portugal – also reacted, reducing prices  and changing frequencies.

Preliminary results shows that since public service obligations are still in force, prices  reduction was not so abrupt as initially expected. Also, yield management of low cost  companies seem more dynamic that incumbents.

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(Comunicação em Conferência)

The pricing strategies reflect the airlines’ business strategies and models. It provides valuable  information to characterize markets’ dynamics and competitive behavior. This paper presents  the results of a study aimed to understand the pricing strategies on a recently liberalized  market.

In 2015, the Portuguese Government liberalized market access to selected airports   with smart aviation in the Azores Islands. The low costs companies – Ryanair and EasyJet, immediately entered the  market. The incumbents companies – SATA and Tap Portugal – also reacted, reducing prices  and changing frequencies.

Preliminary results shows that since public service obligations are still in force, prices  reduction was not so abrupt as initially expected. Also, yield management of low cost  companies seem more dynamic that incumbents.

[:pt]

(Comunicação em Conferência)

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