US-Bangla Airlines

When the COVID-19 crisis hit air transport, the whole aviation industry was affected. The change in the
behavior of passengers following the COVID-19 crisis, travel restrictions and the ensuing economic crisis
have resulted in a dramatic drop in demand for airline services. Significant reductions in passenger
numbers have resulted in flights being cancelled or planes flying empty between airports, which in turn
massively reduced revenues for airlines and forced many airlines to lay off employees or declare
bankruptcy. Some have attempted to avoid refunding cancelled trips in order to diminish their losses.
Airliner manufacturers and airport operators have also laid off employees.

US-Bangla Airlines is the leading premium airline of Bangladesh, with impeccable standards of service
equipped with incomparable reliability and ultimate flying. Because of Covid-19 crisis, they face a lot of
problems. International all flights were off but domestic flights were on by measuring safety issues. The
ticket fair of domestic flights was reduced so much. If we look at the chart:

Before COVID-19

Departure Arrival Super saver Saver Flex

Dhaka Chittagong 2990(minimum) 4000(minimum) 7000(minimum)

During COVID-19
Minimum fare of Tk 1,999 for all Domestic Flights

After COVID-19 (When all flights are opened)

Dhaka Chittagong 3499(minimum) 4499(minimum) 7000(minimum)

The ticket price reduced when the demand of airlines is less for COVID and also the ticket price
also increased when COVID-19 situation getting normal day by day. This kind of price strategy
is known as Demand Oriented Pricing.  It is a strategy based on known periods or high or low
demand and the elasticity of price during those periods. It is basically dependent on supply and
demand. There are 4 types of Basic laws of supply and demand.

1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and
higher quantity.
2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and
lower quantity.
3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and
higher quantity.
4. If supply decreases and demand remains unchanged, then it leads to higher equilibrium price and
lower quantity.
They used no. 2 lower equilibrium pricing when COVID-19 situation arise for their ticket pricing.