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Differentiation in this sector is limited by the fact that airlines in the lower end of the sector compete almost exclusively on price. BA would price themselves out of the market if they tried to integrate their business class services into the economy market. Again taken from the annual report, in the chief executives section he suggests that “To justify the premium we charge our customers we need to deliver the ‘BA Basics’ consistently and offer ‘Brilliance’ in areas where it really counts” – “British Airways' shorthaul flights from London continue to differentiate themselves from the no-frills airlines by providing a full spectrum of services, including free food and drink during flights, whilst also offering no-frills style one way flights from their regional airports”...
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