Many loss making national airlines (such as British Airways and Air New Zealand), that recently concentrated on business-class travellers, have started to compete directly with low cost airlines. They plan to significantly reduce fares, remove restrictions on bookings and set up new websites dedicated to attracting cost-conscious travellers back to national airlines. The quality of the service on-board will not be affected.

While the national airlines are shrinking, cutting costs and capacities, the low cost airlines are racing ahead. Industry analysts expect the low cost airlines share of the market to rise from 7% to 30% in the next five years. As a result low cost airlines have seen their share prices more than double, whereas the shares of national carriers have fallen in value. They believe that weak airlines will eventually disappear and leave space for others to expand. The smaller of the national airlines will have to give up their ambition to be global players. Squeezed by the low cost airlines and their larger national rivals, they will either go out of business, get swallowed up by rivals, or shrink to become niche players.

Evaluate two pricing strategies airlines could adopt to increase their revenue.

One strategy is .... This is when......This could be used by BA because "EVIDENCE FROM ARTICLE." An advantage of this for BA is .... However a problem could be..

Another strategy is...REPEAT AS ABOVE

In my opinion the best strategy is...because...However, it does have the drawback that..., which could be overcome by.... Overall the airlines decision depends on...GENERAL FACTOR.