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The Competitive Environment of the Airline Sector
There are several forms of competition in the airline sector. ...
Recently, much debate has taken place over the implications of strategic airline alliances on the efficient internal workings of aviation markets. Much less attention has been paid to the implications of strategic alliances for airline safety. ...
Airline competition is undoubtedly good news for consumers: the low fares offered by budget airlines are encouraging more people to travel. ...
Since the start of deregulation in 1979, the airline industry has grown tremendously. ... experienced a 225% growth over this period, while Canada, which deregulated its airline industry later and has always had much less competition than the United States, saw a much smaller growth rate of 80%. Thus, it appears that deregulation, particularly in combination with competition, can spur growth in the airline industry.
Impact of policies on competition
Because the airline industry is a complex mix of a competitive and regulated industry, several policy choices could affect its level of competition. ... Changes in policies by these commissions to allow for competitive bidding for boarding gates and landing rights might encourage competition among airlines, and it also might encourage airport authorities to increase supply when bid values are higher than costs. ... This limits the ability of a European carrier to gain the hub-and-spoke economies of scale that might improve its competitive edge on the New York to Europe market or the Washington to Europe market, and also potentially on the New York to Washington market.
Approximate Word count = 1035
Approximate Pages = 4.1
(250 words per page double spaced)
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