Business Case Studies, Organizational Behavior Case Study, Marketing, Marketing Strategies

print page
Tell A Friend
Bookmark
 

Case Categories

Marketing Management Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Virgin Atlantic's Business-Class-only Airline: Emerging Threat to Niche Air Carriers?

Publication Year :  2010

Authors: Vandana Singh Dhadwal, Priti Krishnan, Amy Sonpal

Industry:  Airline Industry

Region:Europe US

Case Code: MM0062

Teaching Note: Available

Structured Assignment: Available


OR





Abstract:
In 2007, the open skies pact between Europe and US was rapidly changing the competitive scenario on transatlantic routes. The small BCO (business-class-only) carriers like Eos, MAXjet, Silverjet, and L'Avion grew significantly creating a niche market on the New York-London route. Though all major traditional carriers like British Airways, Virgin Atlantic, United Airlines and American Airlines had well-established business-class services, these new niche players successfully positioned themselves against these established players. The success of these small niche carriers forced the established carriers including Virgin Atlantic to re-assess their services and networks. In June 2007, Virgin Atlantic announced its plan to start BCO service on various transatlantic routes between New York and various European destinations. Though Virgin Atlantic held significant competitive advantages, the first mover advantage of these small niche players posed a major challenge to Virgin Atlantic. How well Virgin Atlantic can position itself in this niche market was yet to be seen.

Pedagogical Objective:

  • To understand the dynamics of the transatlantic aviation market
  • To understand the factors that led to the emergence of the transatlantic BCO market
  • To analyse the positioning of small niche players and their strategies
  • To discuss the entry strategies of established players in emerging niche markets.

Keywords : Transatlantic Aviation Industry; Deregulation; Open Skies Pact; Competitive Advantage; Growth Strategy; Niche Market; Business Travel; Virgin Atlantic; Business-Class-Only Services; Brand Positioning; Product Cannibalisation; Market Segmentation; Eos; Competitive Strategies Case Study; MAXjet; Silverjet and L'Avion

Contents:

  • Transatlantic Route
  • Evolution of the Transatlantic BCO Market
  • Carriers on Transatlantic Route
  • Virgin Atlantic's Expansion: Business-Class-Only Market

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • Al RiesAl Ries

    Chairman of Ries, an Atlanta-based marketing strategy firm
    Speaks on Brands and Branding
  • P GopalakrishnanP Gopalakrishnan

    is a Vice-President, CavinKare International Business.
    Speaks on Brands and Branding
  • Richard RawlinsonRichard Rawlinson

    Richard Rawlinson, is a Vice President of Booz & Company
    Speaks on Marketing in a Downturn
  • View All Executive Interviews»







Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501504, Andhra Pradesh, INDIA, Phone: 08147-236660/61/62/72, Fax: 08147-236653,E-mail: casehelpdesk@ibsindia.org

©2003-2013 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap