A new airline company could use cost-plus, which all low cost airline company do, this consist as adding extra goods and service to your flight, for example making the customer pay for the meal or duty free or even making they pay extra money to access the television. An advantages would be that you profit will increase as customers often eat in the plane so by taxing the food, they will get extra profit.However the disadvantage is that customers might not be loyal, as they see the company taxes them everything, the customers will opt for another company that o not apply cost plus strategy.Moreover, they could use price skimming if they are entering a high end market such as the private jet market, which is very expensive. Price skimming consist of setting prices high at the release of the product or service and through time decreases. The advantage of it would be high profit margin, the entire point of price skimming is to generate an outsized profit margin.However the disadvantages would be that customers find the price too high and may not purchase in the company and a high competition is set between the company.  Sources: https://www.accountingtools.com/articles/2017/5/16/price-skimming 1b) Virgin airline could use penetration pricing, this consist as putting low prices in order to attract more customers. Virgin airline could so that are they are a rand new company and are doing only national flights. The advantage of penetration pricing is that consumers, having found great deals on your product or service before, will most likely come back again in order to catch those profitable deals again. However a disadvantage is that false loyalty, penetration pricing may attract a particular type of customers who only keep their eyes out for profitable deals and nothing else.Another type of pricing would be predatory pricing, this consist of setting the price below an appropriate measure of cost to eliminate a competitors. Virgin airline could set their price abt lower than their competitors in order to attract more customers.The advantage of predatory pricing is that they could achieve market dominance. It is possible to achieve a dominant market position with this strategy, though predatory pricing may have to be used again in the future to drive away new market entrants.However a disadvantage is that it is only valuable in the short term as new competitors could enter the market. In conclusion, Virgin airline could do this in order to increase their profit as it will create brand loyalty as customers will see that the flight re good quality at a low cost and will tell other potential customers and furthermore create a good brand image. It will make higher revenues as the company eliminates the competition, meaning more customers attracted. Sources: https://competera.net/resources/articles/penetration-pricing http://globalpricingstrategies.com/330-2/ 2a)  Price discrimination is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the seller charges each customer the maximum price that he is willing to pay.2b) Theme parks utilise price discrimination in order to increase their revenue, they make different price for different segment, by segment, i mean parents, kids, seniors…As the theme park make different prices, it is better for the families going. It is cheaper for the kids which will attract more families and people with kids. This will increase the venue of the customers as they will see that for kids it is cheaper and kids under 3 free, they will tend to come more often as there are deals and will lead to brand loyalty.

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