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 Thirteen: Growth of Discount Airlines
Growth of Discount Airlines
The market share of direct flights operated by discount airlines grew from 10 percent in 1990 to nearly 30 percent in 2004. As a consequence, the flying public has saved tens of billions of dollars in lower fares offered by the discount airlines. Many forecasters believe that the market share of the discount airlines will continue to grow, given the lower fares and superior service many of them provide. Three of the largest discount airlines were ranked highest in the quality of customer service in 2004. In contrast, there is the broad expectation that the market share of the major airlines will continue to contract, and that there will be a large consolidation among them.
Professors Jagdish Sheth and ...