Question

Identify

Market structure of your airline carrier

Identify whether or not your airline carrier differs from other carriers and if so; how?

Identify your airline carriers market share

Discuss who are the main competitors in the industry

Forecast future longevity of the airline industry

Answer 1

Let's talk about American Airlines.

a) United airlines operate in an oligopoly market. THere are many other fliers giving the same service with non-price differentiation between them. All of them are dependent on each other for decision making i.e. none of them can take a decision without considering how it will affect other players in the market.

b) No, it doesn't differ from other carriers the only difference found is in the form of non-price competition like the appearance of the carrier, services they are providing while journeying like free beverages and food etc. Overall the services like carrying the passenger are just the same.

c) American Airlines market share is 22.8% of the total US airline market.

d) Main competitors are Delta Airlines, Southwest Airlines, United Airlines.

e) With the growing income of the middle-class budget fliers in the US and around the world. The airline industry is poised to increase, with growing globalization and integration of markets around the world the demand for airlines will also increase. American Airlines should look to increase more connecting flights to the developing world like India, China, and Asean countries.