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1.0 Introduction Customer Relationship Management is a management process, which enables organisations to identify, attract and increase the retention of customers by managing customer relationships. This report will be investigating in to the application of the 'frequent flyer programme,' a CRM based database and the related strategies in the Airline sector. Free flight programmes give airlines customer loyalty by knowing who their customers are, through the use of database marketing. It is a key part of CRM strategy ensuring near-term survival and medium and long term revival for airlines. (Siebel 2005a) The report will concentrate on, BA airlines, Virgin Atlantic and the growing BMI company, UK's three key players in the fragmented airline industry. This is due to the variety of market segments their serve to, competing against increased competition, decreased product differentiation, demand and loyalty, with increased price pressures. (Siebel 2005a) 2.0 Market Overview Air travel represents a minor mode...

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