Operating in the south-western states,Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast.The best strategy to avoid severe price competition is to:

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Providing frequent travelers with special fringe benefits will allow Lancer Airlines to differentiate themselves from their competitors and give their loyal customers an added incentive to choose them over other airlines, without entering into a price war. This strategy will also help to build customer loyalty and increase brand recognition. Cutting costs or reducing services may lead to a decrease in customer satisfaction and ultimately hurt the airline's reputation. Reducing flights and laying off employees may not necessarily lead to a decrease in price competition and may also have negative consequences for employee morale and customer satisfaction. Determining the breakeven price and charging slightly more than that may not be feasible in a highly competitive market where customers have many options to choose from.

Operating in the South-Western States,Lancer Airlines Hopes to Avoid Entering