Crash landing

Crash landing

In just over 2 1/2 years, Western Pacific Airlines went through at least $127 million. Although management's decisions to expand operations quickly and get involved with other business ventures were critical mistakes, ultimately, WestPac's demise is tied to one thing: Its fares were too lo...

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Veröffentlicht in:Marketing management (Chicago, Ill.) Ill.), 1998-07, Vol.7 (2), p.54
Hauptverfasser: Olson, Eric M, Ferguson, Jeffrey M
Format: Magazinearticle
Sprache:eng
Schlagworte:
Air fares
Airlines
Airports
Business failures
Business plans
Case studies
Market strategy
Marketing
Strategic planning
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Zusammenfassung:In just over 2 1/2 years, Western Pacific Airlines went through at least $127 million. Although management's decisions to expand operations quickly and get involved with other business ventures were critical mistakes, ultimately, WestPac's demise is tied to one thing: Its fares were too low. It was probably appropriate to use low fares as an initial tactic to get travelers on board when the company started. But once the airline established itself, ticket prices should have gradually increased, not decreased. Deeply discounted prices also hurt the airline because they created a negative image for customers.
ISSN:1061-3846