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... First, e-business applications give airlines a chance to interact more closely with passengers and understand their buying motives. With better information about consumer behavior, airlines can then tailor their offerings to different segments of the market. Second, internet applications provide airlines with an opportunity to reduce their overall cost structures. ... This creates additional opportunities to increase airlines’ financial flexibility, an important factor in an often ailing industry. ... This will especially threaten airlines who tend to be on the higher end of the price spectrum (with no readily apparent difference in quality). The second threat facing airlines is greater competitor retaliation. ... New entrants will be able to attain e-business parity with larger airlines relatively quickly. This will only further intensify the rivalry among airlines and put downward pressure on price.
Approximate Word count = 607
Approximate Pages = 2.4
(250 words per page double spaced)
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