Airline Competition

Analyze the economics of increased competition for established airlines from low cost operatorsBefore the airline industry was deregulated, major carrier’s behavior was significantly influenced by CAB regulatory policies. Morrison & Winston (1986) says that although regulation limited the flexibility of fares and the entry into markets, flight frequency was explicitly not regulated. This means that […]

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The structure of the airline industry

In the summer of 1997, ValuJet Inc. and AirWays Corp. merged to form AirTran Airways in a deal worth approximately $61.8 million. The emergence of AirTran Airways allowed ValuJet to shed its troubled name following the 1996 crash of Flight 592 which went down in the Florida Everglades killing all 110 people on-board. The merger […]

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The emergences of Low-Cost-Airlines in India

The emergences of Low-Cost-Airlines in India in the past six months have led to stiff competition between the regular network airlines Jet Airways, Air Sahara and Indian Airlines, leading to slashing of fares and other aggressive tactics to drive out the new entrants. This commentary will analyse why the Low-Cost-Airlines pose a threat to the […]

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Marketing Strategy and Planning – EasyJet

EasyJet is Europe’s leading low cost airline. Since its first flight in 1995, the airline has grown from a Luton base offering two routes, to one that offers 148 routes from 44 European airports, operating 72 aircraft. During the financial year to 30th September 2003, the company reported pre-tax profits of £52 million on a […]

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Executive Summary of Singapore Airlines

SIA was officially launched in 1972 after the split of the Malaysia-Singapore Airline. It went through tough time since its launch as it was small and barely had essential infrastructures and resources to compete on same ground with the big names then. Today, SIA is operating with 28, 000 strong workforce devoted to offer its […]

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E-Portfolio Report on United Airlines

When the issue of “supply and demand” is associated with the aviation industry, there seems to be more of a supply than a demand. This excess of supply has bankrupt many airlines like United Airlines (UAL). United Airlines in the past would show the utility of their service by pampering their business and first class […]

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The European Low Cost Airline Industry

The European airline industry is a competitive and dynamic industry whose fortune is closely linked to the performance of the overall European economy. In 1997 the European Commission deregulated commercial aviation within the European Union (EU) with an ‘open skies’ agreement allowing any airline to fly any route in Europe. Over the last 10 years […]

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Southwest Airlines: How One Airline Positions Itself in a Competitive Market

Southwest Airlines (SWA) has positioned themselves as a “different” kind of airline by following this one simple notion from Rolling King and Herb Kelleher: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing […]

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Easyjet and budget airline case study

Prior to 1992, the European Airline industry was an oligopolistic industry with virtually insurmountable entry barriers. Individual countries ensured the competitive success of their own national flag carrying airlines by imposing restrictions on the numbers of landing slots available at their airports. In December 1992, EU legislation was passed which ensured the deregulation of the […]

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Business Economics Assessment – Passenger Airlines

In the airline industry it is possible to identify separate markets. In generally it can be argued that oligopoly is the dominating market structure. The firms in the industry are interdependent and therefore individual companies’ decisions have an influence on the competitors. Furthermore barriers to entry can be observed. In this imperfect competitive market the […]

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