Airline Industry

Porter's Five Forces

Porter's Five Forces: Airline industry

Threat of new entrants

A number of new, low-cost carriers have entered the airline industry in the wake of deregulation of the airline industries, including Southwest, Jet Blue, and Spirit Airlines. At present, barriers to entry within the industry are higher than, for example, entering a small, local pizza market. But barriers are lower than before and recent "congressional mandates aimed at increasing competition at highly concentrated major U.S. airports...required airports above certain concentration thresholds to take concrete steps to ease and encourage new entry and expansion by smaller airlines, primarily by increasing access to airport facilities" (Snidery & Williamsz 2011:1)

Power of suppliers

The power of suppliers is relatively limited, mainly "Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn't very likely. In other...
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