(b) The CEO of Oceania National Airways (ONA) has already strongly rejected the

(b) The CEO of Oceania National Airways (ONA) has already strongly rejected the re-positioning of ONA as a ‘no

frills’ low-cost budget airline.

(i) Explain the key features of a ‘no frills’ low-cost strategy. (4 marks)

(b) (i) A ‘no frills’ strategy combines low price with low perceived benefits of the product or service. It is primarily associatedwith commodity goods and services where customers do not discern or value differences in the products or servicesoffered by