The Competitive Pricing Behaviour of Low Cost Airlines in the Perspective of Sun Tzu Art of War

Abstract

Price wars are the fact of today's aviation industry.This paper seeks to examine the nature of price setting behaviour of low cost airlines and evaluate their financial performance. The findings reveal that the competitive pressure has leaded to price predatory. Based on theSun Tzu Art of War philosophy, this study highlights that the conditions for rationality and success in this business game depends greatly upon the efficiency and intelligence of the line management and believe that the ability to control the price war between these two low cost airlines will provide healthy competition.

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