Nobody downloaded yet

The US Airline Industry in 2004 - Essay Example

Comments (0) Cite this document
Introduction The US Airline Industry started off as an overwhelmingly fragile industry and had a serious need of developmental period before it became a little more stable than it was prior to the deregulation. As we look into the historical accounts of the airline industry in the United States of America, it was solely established to procure air transportation services for mailing materials…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
The US Airline Industry in 2004
Read TextPreview

Extract of sample "The US Airline Industry in 2004"

Download file to see previous pages Intestate routes were being admitted and were dispersed to some twenty three airline companies. Also, a promulgated establishment of guidelines of priorities and inter-firm agreements was created. (Anon., n.d.) Pre-Deregulation Era In the succeeding years, an industrial ordeal took place as cost increases on the fares were implemented causing an ossification to the structure of the airline industry. As a result, manifold airlines were not approved to conduct operations between the year 1937 and 1978. Nevertheless, the so-called “new entrants” have set up themselves as carriers in the local geographical areas in the form of intra-state routes. Due to some oil shocks in the 1970s, an accelerated increase on the ticket prices brought hysterics towards the consumers. The Civil Aeronautics Board decided to impose large increments on fares and a four year frozen activities on some newly acquired routes and delimitation on the capacity of routes. In addition, developing arguments regarding economic liberalism has caused less neither government regulation nor intervention on market practices, and in this case, the US Airline Industry. ...
Business Strategies The Hub-and-Spoke System As a matter of discussion and recollection, several changes have been made following the advent of the deregulation in 1978. The hub and spoke system was adapted which has both allowed more efficiency by traveller concentration and facility improvements and maintenance. The Hub and Spoke system is a specialized operation that would limit flights of large carriers to small ports; instead, larger airlines coordinate with smaller airlines to take the flight franchise on smaller airports and smaller towns and cities. Because of this, the erection of international airports has been limited overwhelmingly where in the case of the US, the only international airport that was added is the one in Denver since the deregulation era. The Direct Foreign Investment (FDI) According to (Izquierdo, Ribes and Rodriguez, 2010), in tradition, the theories relating to the internationalization of firms have been based on the behavior of manufacturing industries. However, there has been a marked shift towards the tertiarization of the economy on a global scale and direct foreign investment (FDI) in the service industries amounts to 50 – 60% of all FDI and the share is forecasted to rise further. Internationalisation, Mergers and Acquisitions Most of the world’s airlines, just like some of the US airlines, export their services to other countries. American, Southwest and Delta airways are involving its operation in the international market. Some of these internationalization movements are done in a direct manner but most of the time US Airlines are cooperating with foreign airline companies in a forged agreement. Several major US Airlines merged with international airlines or even acquires some of them with motives of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The US Airline Industry in 2004 Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from
(The US Airline Industry in 2004 Essay Example | Topics and Well Written Essays - 1750 Words)
“The US Airline Industry in 2004 Essay Example | Topics and Well Written Essays - 1750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The US Airline Industry in 2004

US Airline Industry

...?US Airline Industry Background of the case The US Airline Industry is one of the most renowned industries in the world. As it continuously gain familiarity, it is highly considered one of the best areas to understand business especially using the international business trade theories. Recently, the industry suffered poor level of profitability. There are various factors that could substantially explain this and the bottom line of doing it would mean understanding the external and internal business environment of the US Airline Industry....
9 Pages(2250 words)Essay

Airline industry

...?The airline industry is one of the most powerful industries in the world. In this industry generated $712 billion in sales in the US and 986billion worldwide (Plunkett Research). The demand and supply of airline tickets varies a lot by season. In the good season which is Christmas and summer the demand for airline travels goes up. During this season since the supply cannot keep up with the demand the prices of air travel tickets goes up. During low season the airlines utilize a lower pricing strategy in order to attract more customers. As prices goes down the demand for air travel rises. During off...
2 Pages(500 words)Coursework

Airline Industry

...for British Airways in 2010 was pegged at 414.6 Pounds which represents an increase from its previous year figures that was pegged at 387.1 Pounds (British Airways, 2010, p.16). Employee productivity for Emirates Airlines was found to be 1459 AED which also represents an increase in figures from the previous year which was calculated as 1492 AED (Emirates Airlines, 2010, p.123). The increasing trend of Employee productivity largely reflects the growing operational excellence in the two organizations. Use of new aircrafts like Airbus A 380 coupled with improved demand forecast have led to a growth in the employee productivity of both these organizations. Task 2 Introduction The...
12 Pages(3000 words)Dissertation

The US Airline Industry

..., saturating market and high fixed also force the airline industry to engage in active and aggressive advertising. This is also the reason why that sales promotion is common within the airline industry in an attempt to attract customers (Belobaba et al., 2009, pp. 52-54). Direct marketing and personal selling are more likely to take place in case of business customers and organisation which are ready to provide high revenues to the airlines on a consistent basis in return for more benefits and services. For example, when Gordon Bethune took the charge of Continental Airlines in the year 2004, he made a team of sales...
7 Pages(1750 words)Essay

Economic Profile of the US Airline Industry

...? Economic profile of the US airline industry Introduction The airline industry is a cyclical one. The industry witnesses bankruptcy as well as M&A activities every decade. The airline industry of United States is currently standing a space from where the future does not seem to be bright. The estimates of the International Air Transport Association and that of Federal Aviation Administration expect a rise in cargo traffic and passengers along with decline in profits for the airline companies. Things are to be sorted out before the estimation of profits for the year 2012. As the third...
5 Pages(1250 words)Research Paper

Airline Industry

...for accomplishing the more than average performance within the international airline industry: the elements of cost leadership, the differentiation, in addition to the focus. The two suggested strategies that Lufthansa should opt for are the Cost as well as the differentiation strategies 1. The cost Leadership strategy Under this strategy Lufthansa will need to make an effort in becoming the low cost service provider within its industry on the whole. The resources of the cost benefit are assorted moreover they tend to rely over the formation of the entire airline industry. They may perhaps consist of the search for proprietary expertise. If Lufthansa...
13 Pages(3250 words)Essay

US Airline Industry

...Running Head: US AIRLINE INDUSTY US Airline Industry of the of the US Airline Industry Introduction Southwest Airlines belongs to Dallas, Texas, USA. It is a low-fare airline, serves individuals of more than 50 different cities of 28 states. These US airlines presently render more than 2400 flights in a day, and still expanding itself more towards east. Southwest Airlines of US possesses a significant strategy, which has brought profits from past 26 years. Short-haul journeys make almost 80% of total load of flights on the company. Nevertheless, it is rendering more number of long-haul flights and expanding its range in order to stand with bigger domestic carriers. Southwest first expanded to the East Coast in 1993, with service... to...
8 Pages(2000 words)Essay

Airline Industry

...Airline Industry Table of Contents Table of Contents 2 Introduction 3 2. Main Findings 4 2 Principles of Management 4 2.2 Human Resource Management 9 2.3 Safety and Security 15 3. Conclusions 19 References 20 1. Introduction Aviation industry is one of the largest as well as booming industries around the world. It helps in economic growth, world trade, tourism and international investment. According to the International Air Transport Association, for the last three decades the number of passengers travelling on scheduled flights has increased on average by over six percent annually. In 2004, traffic of international airline passenger was...
13 Pages(3250 words)Essay

Airline Industry Influences on small vs. big airlines such as Airbus and Boeing Economic influences on the need for new classes of services (D’Aveni, 1995). Technological Increased internet and computerized customer and travel service provision Better management and customer service provision, through technology-enhanced applications (Jarach, 2004). Environmental Changes in climate vis-à-vis link with global warming Continued use of oil-based jet-fuel vis-à-vis bio-fuels that are less expensive and environmentally safer (Captain & Sickles, 1997). Opportunities Advanced European aviation industry Market regulation to protect and nurture national carriers Advantageous...
4 Pages(1000 words)Assignment

The airline industry in the US

...The market share concentration in the airline industry is medium. In the top four airline companies held a market share of more than 68.8%. In comparison with 2010 the market share of the top for airlines increased by 5.5%. One of the primary reasons for the increase is consolidation. A good example for consolidation is the merger between US airways and American Airlines. The consolidation maximizes profits of the merged companies. Synergies helped the company achieve economies of scale under the name of an American brand. It also can be more profitable than operate it separately. Coach customers, first and business class customers, business, and freight are the four types of customers that make up the major markets. The private... ...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The US Airline Industry in 2004 for FREE!

Contact Us