Pricing in the Airline Industry

• Thesis title in Czech: Cenotvorba v odvětví letecké dopravy
• Thesis title in English: Pricing in the Airline Industry
• Key words: airline industry, pricing
• English key words: airline industry, pricing
• Academic year of topic announcement: 2012/2013
• Thesis type: Bachelor's thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: PhDr. Pavel Vacek, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 10.06.2013
• Date of assignment: 10.06.2013
• Date and time of defence: 16.06.2014 00:00
• Venue of defence: IES
• Date of electronic submission: 16.05.2014
• Date of proceeded defence: 16.06.2014
• Opponents: PhDr. Tomáš Klinger, Ph.D.

Preliminary scope of work in English

I choose this topic as airline travel market has grown substantially over the last few decades
and has been changing with the entrance of low-cost carriers that made airline transport much
more a�ffordable for general public.
In this thesis I would like to concentrate on pricing strategies of both low-cost and network
carriers connected with the principles on which low-cost carriers operate in order to be able to
charge lower fees than entrance carriers and thus attract customers. Special interest will be put
on the analysis of pricing strategies of network carriers as a response to entrance of low-cost
carriers and possible predatory pricing behavior aiming to eliminate the competition and to
retain dominant position on the market.
The aim of this thesis is to show that network carriers do not engage in predatory behavior.
As an actual example I am going to analyze European airline market and pricing strategies of
European carriers with Ryanair and easyJet being the leading European low-cost carriers with
high share of the market and Lufthansa, Air France, British Airways and Iberia as the biggest
competing network carriers.

Preliminary structure of work:
1. Introduction
2. Background of the airline industry market
3. Pricing strategies in general
4. Predatory behavior in general
5. The case of European airlines
6. Conclusion

Reference
[1] G. E. Bamberger and D. W. Carlton. Predation and the entry and exit of low-fare carriers.
ADVANCES IN AIRLINE ECONOMICS: Competition Policy and Antitrust , 1:1�23, 2006.
[2] A. Eckert and D. S. West. Predation in airline markets: A review of recent cases. ADVAN-
CES IN AIRLINE ECONOMICS: Competition Policy and Antitrust , 1:25�52, 2006.
[3] P. Malighetti, S. Paleari, and R. Redondi. Pricing strategies of low-cost airlines: The ryanair
case study. Journal of Air Transport Management, 15(4):195�203, 2009. Cited By (since
1996): 12.