The US airline industry has been taken as an in-depth case study. This thought-provoking book chronicles the evolution of the airline industry and explains what lies ahead for airlines across the globe. The authors present compelling evidence on how the paradigm shift that is taking place in the airline industry is linked to the big-bang approach to deregulation.
There are lessons to be learned from the US as Europe and Asia undergo the (airline) deregulation experience from a public policy as well as a corporate perspective. Deregulation and Competition: Lessons from the Airline Industry also addresses the crucial question of what will happen to the airlines that are in turmoil. In addition to the comprehensive analysis of the airline industry's evolution, the authors draw from extant ...
Chapter Twelve: The Rise and Fall of the Major Airlines from 1995 to 2004
The Rise and Fall of the Major Airlines from 1995 to 2004
Earlier chapters have discussed how the major airlines created their fortress-hub networks following deregulation. Leveraging their monopolistic market position, the second half of the 1980s proved to be fairly good years for the large legacy airlines after they destroyed the low-price start-up airlines. However, from 1990 to 1994, poor economic times and battles among the major airlines turned out to be disastrous. During this time period, the major airlines lost $12.64 billion more than what the airline industry had earned up to this point.577 However, with the Internet and electronic-commerce boom, the economy grew rapidly over the remainder of the decade. The ...