STRATEGIC PLANNING

Strategic Planning

Strategic Planning

SKYBUS AIRLINE

Introduction

Skybus Airlines is a Columbus, Ohio based Ultra-Low-cost carrier. Skybus has placed an order with Airbus and plans to operate a fleet of 65 A319 aircraft and will begin receiving the aircraft in late 2008. Skybus will begin operations using 3 leased Airbus 319s and plans to expand the fleet with leased aircraft until they begin accepting delivery of the new aircraft.

Discussion

Skybus, a new low-cost/low-fare airline based in Columbus, Ohio, has signed a firm contract for the purchase of 65 Airbus A319 aircraft. In terms of number of Airbus aircraft, this is among the largest single orders ever by a U.S. carrier. The airline has not yet announced its engine selection for the single-aisle aircraft.

“The significantly lower cost base delivered by operating the A319 will enable Skybus to deliver really low fares to our customers at our headquarters in Columbus,” said Skybus Chief Executive Officer Bill Diffenderffer. “We believe the low costs and reliability of the A319, coupled with our low fares, will make for an unbeatable partnership as we grow our business and offer more low-fare destinations. We've carried out extensive research to ensure this aircraft can deliver our goal - really low fares and reliable service.”

“It is exciting to get in on the ground floor of such a promising operation as Skybus,” said John Leahy, Airbus Chief Operating Officer. “It has been a few years since an order of this meaning and magnitude has come from a low-cost start-up airline, and we are professionally flattered that Skybus has turned to the A319 as the core of its fleet. It's a true testament to the airline's confidence in our product and our people.”

Pluralistic Marketing

There is, however, yet another approach to marketing: “pluralistic”. Consider the Sunlight Travels company (a major European travel company, the name of which has been disguised), which deals with multiple market segments and approaches each of these segments differently. In order to capture new customers, or customers who had not thought of leaving for holiday, it regularly displays last-minute deals in its shop windows (e.g. “Málaga, flight and seven-days accommodation. Two persons. Price only 150. Departure this Saturday”). (Kotler & Keller 2009 ) Although Sunlight Travels and their operators make very little money, if any, it is hoped that through offering these travels customers are discouraged from seeking the company's competitors, and in the long run, they may even become regular customers. When booking their travel, some customers want not only the flight and accommodation, but also the whole package including flight, accommodation, excursions, tickets for opera and musical performances, car rental, and insurance. Because of this, the travel company works professionally with other companies that can help fulfilling these customer needs.

This example shows that, because it is prudent to approach each market segment with the approach that best delivers what is required, the company ends up employing a set of different marketing activities. It is also entirely possible, of course, that at times the company will sell a last-minute trip to ...