Specific Aspects of Forming the Tariff Policy of an Airline Company

Abstract

The objective of the article consists in refinement of methodological approaches to the process of forming the tariff policy of an airline company with application of aggregate tariffs as a certain set of tariffs formed according to a homogeneous operational focus and reflecting characteristic features of the existing market environment. The article deals with the process of forming the tariff policy of an airline company as a significant component of its commercial activities which ensures competitiveness of the airline company on the air transport service market and positive financial results. Finding a solution to the problem of efficient tariff rate setting within the variable context of market environment serving as an economic lever for profit growth will ensure improved efficiency of operations of the airline company and achievement of a certain cost effectiveness level, which will help the airline company survive within a challenging economic environment. For this reason, solving the task of setting tariff rates by an airline company taking into consideration its objectives, strategies, and methods determines the relevance of forming aggregate tariffs. For alignment of basic business processes of the airline company, estimation of the required resources, as well as their optimum utilization, a mechanism should be employed which allows achieving a specific goal of the airline company with varying mutual effects taking place, realizing a complex of its strategic objectives through an efficient tariff policy. The influence mechanism is essentially a multi-aspect analysis of integrated indicators of company operations from the perspective of its strategic priorities, anticipated profits, risks associated with implementation of the tariff policy with a view to balancing the interests of all market participants, which necessitates estimation of the viability of implementation of aggregate tariffs and taking into account expenditures resulting from this decision. The conducted analysis allows drawing a conclusion concerning viability of functioning of aggregate tariffs of an airline company aimed at reducing the total of expenses and increasing profits, which can be achieved by providing an adequate and timely response to emerging risks and potential threats. For this reason, the ultimate goal of forming aggregate tariffs concerns the nature and value of the costs associated with operating processes and reflecting the degree of their interaction and the amount of saving achieved by the airline company.