Index

AAdvantage 149 Air New Zealand 59 Abuse of a Dominant Position Air Services Agreements 53-54, 254 138, 162, 183 Accidental no-shows 170 Air Seychelles 133 Advanced Purchase Fares 195 Air Traffic Control 61, 62, 84 Advanced Turbo-Prop (ATP) Deregulation Act 52 143, 155 Airport Co-ordination Ltd 62 Advertising 279-287 Airport service 172-173 Advertising Life Cycles 286 Aldi 88, 89 Advocate Relationship 242, 243- Alitalia 61 244 Alliances 110-117 Aer Lingus 125, 160 ‘All Business Class’ 66, 130-133, Ageing population 65-66 233 Agency Selection 280-282 Al-Qaeda 50-51 115, 121, 160, 163, 178 Amadeus 84, 116, 219, 275 Airbus A318 American 109, 110, 116, Airbus A319 94, 132 117, 126, 131, 149, 165, 216, Airbus A320 123, 148, 149, 160, 217, 218, 219, 223, 249 173 ‘Ancillary Revenues’ 97 Airbus A330 32, 39, 133, 165, Ansett Airlines 52 173, 177 Ansoff Matrix 156-158, 180 Airbus A340 32, 163, 165, 173, Anti-Trust Immunity 110 177 Apollo 217 Airbus A350 32 “Apparent” Needs 11-12, 30, Airbus A380 84, 106, 161, 165, 233 177, 178 Asda/Walmart 209, 230 AIDA Model 257-258, 271 Atlasair 86, 178 Aircraft utilisation 38-39, 101 ATR 72 155 Air Asia 91 Australian Airlines 52 Air Berlin 222 234 Air Canada 59, 101, 115, 126, 160, 264 Barriers to Entry 78-81 Air Europe 238 Belly–hold capacity 45-47 Air 56, 59, 61, 64, 110, “Betrayal Factor” 273 132, 143, 180, 225, 232 BMI Baby 101 Air Freight Forwarders 21, 22, BMW 228, 237 86, 92, 223-225, 288 Body Shop 229 Air Mauritius 133 318 Airline Marketing and Management

Boeing 83, 105, 121, 144, 160, Cendant Corporation 219 164, 178 Channel Tunnel 155 Boeing 707 177 Chapter 11 Bankruptcy 60, 126, Boeing 717 144 199 94, 123, 132, 148- Charleroi Airport 104 149, 160, 173 Charter Airlines 38, 101, 133- Boeing 747 84, 164, 165 135, 188, 208 Boeing 747F 176 Chartered Institute of Marketing Boeing 757 131, 160, 176 1 164, 173 Chicago Convention 53 -300ER 32, 164, 173 Civil Aeronautics Board 52 Boeing 777-200LR 32, 163 Climate Change 73-74 Boeing 787 32, 166 Club World 231 Bombardier Dash 8 155, 173 CN Touristic 134 Boston Box 151-156, 180 Coach Class 65 Boston Consulting Group 152 Code-sharing 108, 111-112, 128 Brand 209, 226-241 Combi aircraft 178-179 Brand positioning 232-236, 261 Commissions 81, 92, 125, 147, Brand stretching 229, 238-239 206 Branson, Sir Richard Commodity 209, 226-227, 240 British Aerospace 143 Communications Mix 260, 263, 24, 56, 59, 64, 290 66, 77, 101, 109, 110, 117, Concorde 132, 143, 232 118, 125, 131, 132, 133, 143, Connexion-by-Boeing 144 144, 161, 169, 180, 201, 217, Consolidation 21 231, 232, 249 Consolidators 19, 20 British Caledonian 138 Consumer 9 British Midland Airways 94, 96 Consumer Marketing 2, 48 “Bucket Shop” 20, 82 109, 110, Bulk Unitization Programme 204 172 Business Class 10, 31, 33, 66, “Controllable” costs 201 70, 77, 91, 99, 118, 123, 144, Copywriting 270-272 159-160, 161, 174, 182, 186- Corporate Business Traveller 24, 187, 214, 228, 250, 252, 266 28, 37 Buyers 14 Corporate Travel Manager 150 Cost-per-Thousand (CPT) 283 “Cabotage” 53, 78 “Cost Leader” airlines 18, 32, Carbon Trading 74 87-88, 89-105, 114, 122, 124- Cash Cows 154-155 125, 127, 134, 154, 158, 217, Cathay Pacific 110, 117 221, 292 “Cattle Truck Handling” 95 Creative strategies 283-286 CDG Airport 95 Cross-border Ticketing 98 Index 319

Customer 8-11, 19, 20-22, 23-25, “Earn-and-Burn” rights 112, 249 48, 81 Easyjet 28, 53, 85, 91, 94, 95, Customer relations 175, 244, 99, 221, 222 246-248 Economic Market Investor Principle 60 Dallas Love Field Airport 94 Economic Perishability 43-44 “Dash-for-Cash” 198-199 Economies of Scale 79-80, 85, Database Marketing 265-273 111, 147, 189 Deciders 12 Economies of Scope 111 Decision Making Unit (DMU) Embraer 123, 168 Decline Phase 147-148 Emergency Traffic 42-43, 44 Deep Vein Thrombosis (DVT) Emirates 106, 111, 172 39, 103 Engine Alliance 153 Deliberate No-shows 170 Environmental taxation 72 Delta Air Lines 60, 101, 109, Eos Air 131, 232 110, 117, 126, 193, 214, 219, Eupo-Air 82 232, 249, 252 European Commission 104 Delta Express 101 European Court 54 Demographics 35-37 European Low Fares Airline Denied Boarding Compensation Association 105 172 European Parliament 104 Department of Transportation 99 Excel Airways 134 Deregulation 28, 51-56, 140, Expedia 216 182-183, 208 Eva Airways 24 Design density 176 Destroyer relationship 242 Fairlines 130 DFW Airport 94 Federal Aviation Act 52 DHL 93, 204 Federal Express 55, 93, 129-130, Differential Pricing 186-194, 157, 204 205 Field sales team 274-279 Differentiation 87-90, 105-110, First Class 9, 10, 33, 65, 66, 70, 114, 158, 293 118, 159-160, 161, 174, 182, Directional imbalances 40 186-187, 214, 250, 252 “Disintermediation” 86-87 “First Mover Advantage” 106 Disney 19 , 228 “Five Forces” 76-87 Diversification 137-138 Fleet commonality 93 Dogs 155-156 Focus strategies 89-90, 129-135 “Do-Nothing Case” 157 Fokker 154, 238 Dusseldorf Airport 132 Ford 218 Four Corners Travel 144 “Four Ps” 2-3 Franchising 239-240 320 Airline Marketing and Management

Frequency 11, 30, 31, 42, 233 Independent business traveller Frequent Flyer Programmes 3, 24, 28, 68, 91-92 11, 18, 30, 33, 35, 83, 108, Industrial buying behaviour 12- 113, 122, 128, 131, 149-150, 15 239, 241, 248-256, 265, 268, Industrial Marketing 2 293 In-flight service 31-34, 173-174 Freight-of-all Kinds(FAK)pricing In-flight surveys 27, 175 204 Influencers 15 Freighter aircraft 42-44 Innovators 150 Insurance costs 45 Galileo International 84, 116, Integration 267 219, 275 Integrated carriers 21, 83, 223 Gatekeeping 12-13, 272-273 International Standards 95, 124 Organisation (ISO) 176 General Cargo Rates 203 Internet 71, 82, 91, 125, 134, General Electric 153, 154 214-217 General Electric Capital Aviation Islip Airport 94 Services (GECAS) 207 GF-X 224 Jetblue Airways 94, 95, 193, 222 Global Distribution Systems Jetstar 101 (GDSs) 56, 71, 99, 101, 108, Jetstream 61 155 112, 116, 125, 184 , 217-233, JFK Airport 94, 95 239, 275 Joint purchasing Global warming 72 “Just-in-Time” 45-47 Go 125 “Jugular Marketing” 128 Gol 91 Google 210, 223 KLM 56, 109, 110, 160 Grandfather Rights 62-63, 78, Korean Air 58 122, 124, 138, 162, 169 Growth Phase 146 Laggards 150-151 Laker Airways 232 Hapag-Lloyd Express 134 LaGuardia Airport 94 62, 124, 169 Landing Fees 94-95, 101 Hub-and-Spoke 57, 163-164 Air 234 Learning curves 80, 146, 147 IATA 28, 105, 114, 183, 200, “Legacy” airlines 1, 58, 101, 203 106, 117-129, 190, 191, 192, Iberia 56, 125 193, 194 IKEA 88 Lifetime Value 241 ILFC 207 Logistics 7-8, 22, 46 Imitative buying 143 “Lost-in-the-Middle” 87, 89, 135 Index 321

Low Cost Carriers 1, 132, 170, OneWorld 110, 111 191 On-line connections 108 Lufthansa 59, 64, 115, 128, 132, “Open Skies” agreements 54, 110 133, 144 , 157, 160, 249, 255 Operating emergency 42 Orbitz 216 McDonalds 228 Overbooking 170-172 McDonnel-Douglas 160 Oversegmentation Airlines 59 Operating Lease 141 Market segmentation 22-27, 40- Opodo 216 42, 48 62, 95 Marketing – definition 1 Marketing emergency 42 Packaging costs 45 Marketing Mix 2, 147 Panalpina 87 “Marketing Myopia” 7, 48 Pan American 237, 249, 252 Marks and Spencer 89, 90 Passenger Rights 104-105 Marlboro 230, 236 Percentage-of-Revenue Method Maturity phase 146-147 260 Maximum stay conditions 195 PESTE Analysis 4, 49-50 Maxjet Airways 130-132 Physical perishability 43 MD-11 176, 177 Porter, Michael 76 , 82, 104, 105 MD-80 160 Porter’s Five Forces 74-83 Media buying 282-283 Point-of-sale service 168 Media relations 273 Power of Customers 78-81 Mercedes 228 Power of Suppliers 81-83 Metroair 101 Pratt and Whitney 153, 154 MGM Grand Air 130 “Preferential” fares 197 Microsoft 92, 216 Premium Economy 10, 131 Midway Airport 94 “Premium Traffic” 65, 66, 118 Minimum Charge 190 “Presenteeism” 69 Minimum stay conditions 194 Privatair 132 “Miles-and-More” 132 Privatisation 58-60 Monarch Airlines 134 Product Life Cycle 36, 43-44, My Travel Lite 134 103, 142-151, 180, 255, 286 Psychographics 35-37 Newark Airport 94 Punctuality 29, 34, 166-167, Northwest Airlines 60, 109, 110, 175, 233, 235 160, 219 Qantas 264 OAG 28 Quality control 174-177, 245, Qantas 59 246 O’Hare Airport 94 “QC” (Quick-Change) aircraft Olympic Airways 61 178-179 322 Airline Marketing and Management

Rackham, Neil 258 Single Aviation Market 53, 60, Relationship Marketing 35, 68, 77, 91, 183 241-256 Skyteam 110, 111, 232 Reservations 160-161 Skytrain 232 Retailers 207 Slot Allocation 61-64, 79, 153, “Retreat-to-core” 123-124 292 Revenue Dilution 196 “Slot Co-ordinator” 62 Revenue Management 4, 98, Smith, Fred 157 120, 121, 169, 184-186, 191- Snowflake 101, 232 192, 199-200, 205 Song 101, 232 Rogers E.M. 139 Southwest Airlines 28, 90, 94, Rolex 228 95, 96, 99, 100-101, 119, 138, Roll-on/Roll-off 41 221, 222, 233 Rolls-Royce 89, 153, 154 South African Airways 125 Routine perishable traffic 43-44 Specialisation 137-138 Routine Non-perishable Traffic Specific Commodity Rates 203- 44-48 204 Ryanair 28, 53, 91, 94, 95, 99, Spey Engine 154 103, 104, 119, 125, 221, 222 SPIN Cycle 258-259 Sponsorship 233, 235, 263-265 Saab 2000 143 Standby fares 170, 196-197 Sabena 61, 117 Stars 153-154 SABRE 84, 116, 217, 219, 223, 110, 111, 115, 232, 275 255 Safety stock 46, 47 Start-up Economics 80 SAGA 67 “State Aid” 60, 104, 135 Sainsbury’s 209, 230 Status goods 145 Sales budget 245-248 Stansted Airport 132 SARS 117 Strasbourg Airport 104 SAS 101 Substitution 77-78 Schedules planning 154-158 “Sum-of-sector-fares” Schiphol Airport 95 Superprofits 57, 208-211, 229, Scope Clauses 128 230 Seat pitch 101, 133-134, 159, Swiss International Airlines 132 186-187 Swissair 117, 160 ‘Seventh Freedom’ 55 Switching costs 81-82, 83 Selling 5 Shipping Manager 22 Tango 101 Shuttle 169-170, 237 Tariff Co-ordination 114, 183 Shuttle-by-United 101 Task-based Method 261, 290 Singapore Airlines 106, 117, 166 Tay Engine 154 Terrorism 50-51 Index 323

Tesco 90, 209, 230 Upper Class 231 Thai International 174 UPS 55, 93, 129-139, 204 Ticket flexibility 29 US Airways 101, 109, 126, 169 “Ticketless Travel” 169 Users 14 TNT 93, 204 “Tourism Saturation” 75 “Value Added” focussing Trade cycle 64-66, 118, 121, Valujet 103 201, 253210, 234, 239 Van Cleef and Arpel 228 Traffic Rights 138, 153 VARIG 58 Trailfinders 82 Videoconferencing 7,70-71, 77` Transatlantic Common Aviation Virgin Atlantic Airways 10, 111, Area (TCAA) 131, 172, 231, 238 Trans- Airlines 52 Virgin America 238 Transfer connection Virgin Blue 53, 91, 238 Travel agents 17-18, 85, 91, 208, Visiting-Friends-and-Relatives 210, 211-217, 221-222, 231, (VFR) 25 276, 293 Travelodge 88 Wardair 238, 239 Travelocity 216 Warehousing costs 288 Treaty of 55, 199 “War-on-Terror” 50, 117, 123 True needs 11-12, 16, 30, 232 Westjet 91 TUI 134 Wet leasing 86, 178 TWA 219, 249 Wholesalers 207 Wildcats 152-153 Uncontrollable costs 201 “World Offers” 234 Uniform Pricing 186-194, 205 Worldspan 84, 219 Unique Selling Proposition World Traveller Plus 161 (USP) 273 Unit Load Devices (ULDs) 86, Yield Improvement Programme 180, 204 (YIP) 200-201 United Airlines 60, 65, 101, 109, 114, 126, 131, 249, 255 Zip 101