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Essay / Research Paper Abstract
This 3 page paper provides an overview of the airline industry. Several competitors are discussed specifically. Porter's Five Forces model is utilized in the analysis. Threats and opportunities are evaluated. Bibliography lists 6 sources.
Page Count:
3 pages (~225 words per page)
File: RT13_SA238air.rtf
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Unformatted sample text from the term paper:
While the sector has been significantly influenced by the terrorist attacks of September 11th as airplanes were the weapons of choice for the day, the industry has lived to fight
another day. Still, it suffers. Right after September 11th, the airliners were hurting and requested a government bailout. Interestingly, according to Tully (2002) the concept of a United bankruptcy
would be good for the airline industry. The reason is that United planes would keep flying regardless of what happens and the crisis represents the first true possibility for the
industry to change its disastrous spiral in terms of labor costs (2002). The major airlines which are American, United, Delta, Northwest, Continental, and US Airways have been hurting from
the recession as well as the aftermath of Sept. 11th and their revenues have dived 23% (Tully, 2002, p.131) since 2000. Costs in terms of of insurance and security have
increased significantly and analysts suggest that these six major competitors will lose $6 (2002, p.131) billion in 2002 alone. The United Airlines crisis could prompt unions to realize that there
is a need for change (2002). In other words, if the unions realize that there is not a lot of money in the industry anymore, they may settle for what
they have. United Airlines restructured in 1994, and began a bold experiment in terms of employee ownership (Tully, 2002). In exchange for pay cuts, all of the pilots, mechanics,
and so forth received 55% (2002, p.131) of United shares. The dream was that the employees would moderate their future pay demands for the good of the company that they
owned for the most part (2002). All airlines are hurting, but United is probably the weakest of all. American Airlines has problems too, and one could say that it
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