Due to the deregulation of the industry competition intensified, prices dropped, and the number of people travelling increased. Many new companies emerged and regional airlines saw deregulation as an opportunity to expand. Due to the rise in competition, by 1986 mergers started to take place and in 1987 64.8% of the market was controlled by the four largest airlines. The demand for air travel is determined mainly by price, studies revealed that half of the leisure travellers and on quarter of business travellers did not have a preference for a particular airline, which means that prices determined the preference. So the strategy to compete for customers consisted mainly in pricing and flight schedules. The demand for flights varies depending on the season or the business cycle therefore airlines have to develop different pricing strategies and offers depending on the season or the business cycle period. An other determinant for demand is technology, the new telecommunication possibilities have made air travelling unnecessary in some cases, which of course has affected airlines revenues. 5- Consumer needs. Consumer needs are clear, what airline consumers need is basically god prices and good flight schedules. These are the basic needs, apart from these ones we could also point out other needs such as big, comfortable seats for long flights, good service on board, good food, punctual departures, check-in facilities, movie channels, etc. All these are consumer needs, but studies have shown that demand is mainly determined by price and a flight schedules, the rest just add value to these two, therefore companies must focus on ways to lower prices and provide good flight timetables. There are two types of travellers, business travellers and leisure travellers, these two of course have different needs, for the first ones price is not so important because usually the company pays for it on the other hand punctuality and flight schedules are very important to them.
