Chapter 2 has established that an airline’s marketing policies must clearly reflect the structure of its market. This chapter deals with the other, crucial foundation: the marketing environment, or the background against which marketing strategies are developed. It will become clear that there is no such thing as a ‘right’ and a ‘wrong’ strategy. The question as to the strategy an airline should employ can only be seen against the background against which it is being prepared and implemented. A strategy that might be successful under one set of industry circumstances could equally turn out to be a disastrous one under another set of conditions.