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Essay / Research Paper Abstract
This 7 page paper presents an analysis that looks at the structure, conduct and performance found within the airline industry on a global basis. The bibliography cites 8 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TESPCair.rtf
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Unformatted sample text from the term paper:
industry is one that has undergone change over the last few decades, it is also an industry that is suffering in the recession but is necessary for many businesses to
facilitate travel. In order to examine the industry the structure, conduct and performance will be considered individually. 2. Structure The industry structure has changed considerably over the last few
decades. In many areas there has been a monopoly, where the state owned or controlled airlines had sole access to many routes (Brander and Zhang, 1993). This has been changing
with moves such as the Open Skies agreement and liberalization of the airline market. This has resulted in an increased level of passenger choice. However, it may still be argued
that when looking at many routes there is an oligopoly due to the barriers of entry. In order to fly the routes it is not only a matter of having
a licence, there is the need to get the take off and landing slots at the airports. This means that effectively, there will usually only be a few airlines that
will fly specific routes direct. For example, if a passenger wants to fly from London Heathrow to Miami there are three airlines that provide this route on a direct basis;
British Airways, Virgin Atlantic and American Airlines. Other airlines, such as KLM and Continental will offer the service, but with the need to make a stop over (Kayak, 2009).
For domestic flights there similar patterns, in many countries, including the US and the UK domestic flights, starting and leaving within national boarders may only be undertaken by airlines from
that country; this creates another oligopoly situation, with a high level of concentration and the control in the hands of only a few operators. This structure has a
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