The response by airlines to customers’ demands for lower and lower fares has been to do exactly that, lower seat costs, but at the same time to strip more and more of what is included in the fare out of the price.
And then there were four…major U.S. airlines that is. Last week, it was announced that American Airlines will merge with US Airways.
In a recent post on airline brand differentiation I shared insight into the creation of Song Airlines, Delta’s high touch-low cost airline subsidiary, a first of its kind airline brand developed to attract primarily women to its leisure destinations.
Remarkably, even though Song Airlines (Delta’s high-touch low-cost subsidiary) was folded back into Delta in Mid 2006, I still get several comments each month from former customers and employees about what a great brand it was.
They say that things come in threes. We should, therefore, not be surprised that Silverjet has now followed rival airlines Eos and MAXjet into financial difficulties. Things aren’t looking good for the British business-class airline. A £12.6m funding deal appears to have fallen through and shares have been suspended.
