This would be done with an aim of giving more valuable services to that segment of customer who will generate more profit in the long run. So here cost of giving same service quality to all the customers would get reduced by segmenting the customers.
This process may help in the formation of purer and more profitable business, delivering service quality to different segments of customers at their perceived level. The large carriers like British Airways can never compromise with the service quality they provide to the customers. Here in how they are different from the other low cost carriers. This approach would certainly give much more product distinction than that is present. (“Flight for Survival: A New Business Model for the Airline Industry”, 2003). It is likely that these changes in the business model would help the larger airlines like British Airways to fulfill dual purposes.