In 5th of April 2010, the volcano Eyjafjallajökull in Island started eruption and massive and dense volcanic ash clouds caused to stop air traffic in busiest air space of the world. All flights from or to major European airports have stopped and millions of passengers to be stranded in airports. This was the largest air traffic shut-down since World War II in Europe. IATA estimated that during this closure (5th to 21st of April, 2010) 100,000 flights were cancelled in total, and 10 million people stranded or unable to board their flights. According to IATA data Airlines lost 1.7 Billion Dollars, and Airports lost 250 million Euros. Specifically, low cost carriers which have inter Europe flights had the worse hit comparing to legacy carriers. Low cost carriers cancelled %61 of their flights. Besides, 75% of European and 30% of total worldwide airline capacity was cut during this period.
Published in Chapter:
Financial Implications of Relationship Marketing in Airline Business
Hasan Dinçer (Istanbul Medipol University, Turkey),
Ümit Hacıoğlu (Istanbul Medipol University, Turkey), and Aydın Özdemir (Beykent University, Turkey)
Copyright: © 2015
|Pages: 43
DOI: 10.4018/978-1-4666-7484-4.ch025
Abstract
Relationship marketing promises a change from vendor, product and price centered marketing concept to a new people, long-term relationships and value centered marketing concept for airline companies in search of a messiah who will rescue them from bleeding to death because of monopolized supply market, duplicated services, financial crises, heavy pressure of competition and low profit margins. In this chapter, definitions and short background of relationship marketing are revised by focusing on components of the concept and relations with customer loyalty, customer value and basic notions. A glance at the airline industry takes place with a focus on relationship marketing and airline business on the basis of implication aspects such as frequent flyer programs, global distribution systems and internet. Specifically, domains of relationship marketing concept on the airline business are analyzed in detail specific to cost and profitability balance.