Airlines’ Pricing Strategy in Context of a Recently Liberalised MarketAirlines’ Pricing Strategy in Context of a Recently Liberalised Market

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(Conference Proceeding)

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Conference: 20TH ATRS World Conference
Year: 2016
Location: Rhodes, Greece
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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.

[/vc_column_text][vc_text_separator title=”Keywords” title_align=”separator_align_left” align=”align_center” color=”grey”][vc_row_inner][vc_column_inner el_class=”” width=”1/6″][vc_btn title=”Liberalized Market” style=”modern” shape=”rounded” color=”grey” size=”xs” align=”center” i_align=”left” i_type=”fontawesome” i_icon_fontawesome=”fa fa-adjust” i_icon_openiconic=”vc-oi vc-oi-dial” i_icon_typicons=”typcn typcn-adjust-brightness” i_icon_entypo=”entypo-icon entypo-icon-note” i_icon_linecons=”vc_li vc_li-heart” button_block=”true” add_icon=”” i_icon_pixelicons=”vc_pixel_icon vc_pixel_icon-alert”][/vc_column_inner][vc_column_inner el_class=”” width=”1/6″][vc_btn title=”Airlines’ Pricing Strategy” style=”modern” shape=”rounded” color=”grey” size=”xs” align=”center” i_align=”left” i_type=”fontawesome” i_icon_fontawesome=”fa fa-adjust” i_icon_openiconic=”vc-oi vc-oi-dial” i_icon_typicons=”typcn typcn-adjust-brightness” i_icon_entypo=”entypo-icon entypo-icon-note” i_icon_linecons=”vc_li vc_li-heart” button_block=”true” add_icon=”” i_icon_pixelicons=”vc_pixel_icon vc_pixel_icon-alert”][/vc_column_inner][vc_column_inner el_class=”” width=”1/6″][vc_btn title=”Low Costs and Incumbents Companies” style=”modern” shape=”rounded” color=”grey” size=”xs” align=”center” i_align=”left” i_type=”fontawesome” i_icon_fontawesome=”fa fa-adjust” i_icon_openiconic=”vc-oi vc-oi-dial” i_icon_typicons=”typcn typcn-adjust-brightness” i_icon_entypo=”entypo-icon entypo-icon-note” i_icon_linecons=”vc_li vc_li-heart” button_block=”true” add_icon=”” i_icon_pixelicons=”vc_pixel_icon vc_pixel_icon-alert”][/vc_column_inner][/vc_row_inner][/vc_column][vc_column width=”1/6″][vc_text_separator title=”First Author” title_align=”separator_align_center” align=”align_center” color=”custom” accent_color=”#c44044″][vc_column_text]
Jorge Silva

Jorge Silva

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Vasco Reis

Vasco Reis

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Inês Fonseca

Inês Fonseca

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(Comunicação em Conferência)

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Conferência: 20TH ATRS World Conference
Ano: 2016
Localização: Rhodes, Grécia
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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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Jorge Silva

Jorge Silva

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Vasco Reis

Vasco Reis

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Inês Fonseca

Inês Fonseca

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