Would you like to pay less for your airline ticket?

Recently, Wow Air, a new discount air carrier, launched a $99 fare across the Atlantic, targeting at the lower and middle class by using the cost leadership strategy from the Porter’s Generic Strategies. In contrast, the average ticket is around $770 for single stop and $800 for nonstop tickets. However, Wow Air’s unbelievably low-ticket prices will be only for introductory fares but the airlines plans to offer the lowest price in the market. Occasionally, the company plans to have similar fare rates as the introductory fare.

Many consumers may be skeptical of this deal. The main reason behind this low price is due to its headquarters, located in Iceland. The location will allow the airplanes to stop to refuel at a midpoint. Also, since carrying the large amounts of fuel costs more due to its weight, it will allow the airline to save money by going shorter distances and indirectly develop corporate social responsibility by reducing pollution. This may be difficult for the company to persuade its consumers but this allows several hundred dollars in savings so it is likely to become successful.

Work Cited

Fredman, Roberto A. “Wow Air Launches $99 Fares across Atlantic.”Gloucester Daily Times. The Washington Post, 30 Oct. 2014. Web. 01 Nov. 2014. <http://www.gloucestertimes.com/cnhi_network/wow-air-launches-fares-across-atlantic/article_a8ff338b-8b95-5fc7-9a22-cf015dce4d92.html>.