Analysis and Recommendations for the Airline Industry

The United States airline Industry is a complex business that is affected by many internal and external factors. The successes and failures of this industry are constantly fluctuating over time. While deregulation brought great triumph and positive change, the tragedy of 9/11 was the initial factor leading to the downward spiral of failure that the current airlines face today (Siddiqi, 2009). Currently, the International Air Transport Association reported that the airline industry suffered a net loss of $8 billion dollars during 2008 (wikinvest). The current failures are most affected and influenced by competition, buyer power, technology, and the economy. While it is evident that the airline industry is suffering as a whole, there is one airline that is flourishing with achievement amongst the failing industry. Southwest airline's unique way of operating has generated a consistent profit throughout the most influential factors that affect the industry.

COMPETITIONRivalry among competitors within the airline industry is an extremely important aspect.

English: A Boeing 747 of Pan Am at Zurich Airport ...

Vancouver International Airport (YVR/CYVR), Richmo...

English: "Fly Delta Air Lines" marker

With more competition within the industry, consumers will experience more benefits. Advantages such as lower ticket prices and less competition will cause potential financial problems for the consumers. As many of the major competitors within the industry actively take steps to overpower other airlines, we as consumers may begin to feel the effects.

Major Players in the IndustryThe domestic Airline Industry consists of many different competitors, some that are more successful than the others. At the current time the leading competitors in the United States include Delta Air Line, American Airlines Corporation, United Airlines Corporation, Southwest Airlines Company, and US Airways Group Incorporated. These five Airline companies make up nearly 50% of the Market Shares within the Industry with Delta owning the largest portion of the market shares. Of these five Airlines, the only one that has been consistently profitable within...