Market Performance of Pegasus Airlines - Essay Example

Pegasus Airlines is a company that has its headquarters in the Kurtkoy area which is located in Istanbul, Pendik and Turkey. It is an airline of low cost. Formerly it was a contract airline which entered into a corporation with Aer Lingus. But now it is completely managed by Esas Holding.

Pegasus is ranked as the second largest airline and it has already become a strong competitor of Turkish Airlines which is considered as a flag carrier. The company has the potential for improvement in factors such as load factor and ancillary revenues. Pegasus enjoys the benefit of a catchment market which is underpenetrated and also the benefits of advantageous geography. Such factors help the company concerning connecting flights to increase its growth prospects. The infrastructure of the airport is very flexible and it supports long-term growth. The company’s fleet plan is accommodative of growth while at the same time can be considered balanced (Surhone, Tennoe and Henssonow, 2011). The company should follow a marketing strategy to highlight such factors as cost advantages, lower costs of the airport, and an airport infrastructure which is considered as flexible.

The strengths can be the factors such as the airline's growing very fast in the EU and the fact that the company has a product offering which is considered to be very simple with the benefits of attractive pricing. The weaknesses can be enumerated as factors such as the airline being highly dependent on fuel prices and that the airline must obtain bilateral agreements for getting sanctions for new routes. The opportunities can be factors such as the aviation market in Turkey is very much underpenetrated and that there is considerable scope for improvement in factors such as loading and the utilization rates of aircraft with the launching of night flights. Threats could be considered as the factors such as increased competition in Turkey from the low-cost carriers of Europe and the opening of a new airport in Istanbul.

The company should focus on the opportunities and develop its marketing strategy accordingly. It should use advertising as a means to gain a greater market share and increase its revenue in the process. As the aviation market in Turkey is underpenetrated, there is every possibility that other low-cost carriers in Europe will try to enter the market. In this regard, the company should use advertising to highlight factors such as lower costs of the airport, cost advantages, etc. that it is already enjoying.