A Note on the US Airline Industry

To analyze the different factors that determine the structure of the industry

The US airline industry traces its roots to 1903, when the Wright Brothers accomplished the first successful flight. In over a century of evolution, the industry has undergone a number of changes. The case discusses the major events that occurred in the US airline industry over the years, such as deregulation, the Gulf War and September 11 attacks, and their effects on the dynamics of the industry. The structure of the industry is determined by analyzing its key strategic dimensions. The case also discusses the key challenges faced by the industry and concludes with an examination of consolidation as an option for the future.                                                          

Issues:

» To understand the evolution of the US airline industry and the different stages in its lifecycle

» To analyze the different factors that determine the structure of the industry

» To study the growth of low cost airlines in the industry and analyze the reasons for their increasing market share

» To examine the chief challenges faced by the companies operating in the industry and how these challenges may be met

» To analyze the outlook for the industry and to discuss consolidation as an option for the future

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