ABSTRACT
This chapter examines the product features an airline decides to offer its customers. The product an airline chooses to provide depends largely on the passenger segments it wishes to serve. Many business strategists believe that corporate strategic decisions must be based on a core concept defining how the firm can best compete in the marketplace. A firm pursuing cost leadership attempts to maintain the lowest cost production for a given level of quality. A differentiation strategy creates unique products for varied consumer groups. Tailored product features create brand loyalty which translates into the ability to charge a premium price. An airline has a broad range of product choices with which to meet passengers’ wants and needs. The product decision process begins with the airline’s strategic vision. The distinction between comprehensive network airlines at one end of a spectrum and low-cost carriers at the other is useful for elucidation but simplistic.
