Price Discriminations in The Airline Industry:

Does Pandemic shape the way how the

airline operate?

The assignment is compulsory. The assignment is due by, 30th of May,2024. The presentation is
scheduled for 1st of May during the lecture time.
Background

Price discrimination can be observed in many different industries. It involves charging different
price to various groups of consumers for the same items of the products. It can be seen
and well known that the airline industry in every country has been practicing the price
discrimination for many years and other industry try to practice in the same way.

This research is based on the competitive pricing (price discrimination) adopted by low-cost
budget airline and National flag carrier.

To understand such practices, you have to address the following:

a) Choose two airlines: A budget airline and another a national carrier.

b) Analyze the annual reports of these two airlines and explore the revenue, cost and
profitability over the last 5 years.
c) Identify the pricing strategies that each of these airlines adopted and highlight one
success story and a failure story of each of the airline. Is there any observable changes in
pricing strategies between pre-pandemic and post pandemics period
d) In the report you will examine using economic theory to explain the importance of price
discrimination, various kind of price discrimination (strategies) adopted by the airline. In
particular, how such strategies improve overall profitability. Make sure that you use
marginal revenue and marginal cost analysis for both for peak period and off-peak
period.
e) The format of the report should be based on a business report, comprising executive
summary, table of contents, introductions, main body of analysis and conclusion and the
references.
f) You are free to use any supporting documents (journal articles….), graphs and other
resources for the reports.