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Airline Industry - PowerPoint PPT Presentation


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Airline Industry. Is this a profitable industry? How do Five Forces account for profits? How do airlines compete?. Delta US Airways United American Northwest Continental TWA. Southwest Alaskan Midwest ComAir ASA. Major Players. Differentiators/Niche Players?. JetBlue

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airline industry
Airline Industry
  • Is this a profitable industry?
  • How do Five Forces account for profits?
  • How do airlines compete?
major players
Delta

US Airways

United

American

Northwest

Continental

TWA

Southwest

Alaskan

Midwest

ComAir

ASA

Major Players
differentiators niche players
Differentiators/Niche Players?
  • JetBlue
    • “Low cost” Business-class only
  • Virgin
    • Sleeping space
    • Showers
    • Pick-up Service
    • Back massage
capacity utilization
Capacity Utilization

Available Seat-Miles (in millions)

keys to profitability
Keys to Profitability?
  • Increase total utilization rate:
    • Which business-level strategies?
    • Retire excess capacity?
  • Decrease break-even utilization rate
    • Efficiency (quick turnaround, new planes)
    • High-load routes
    • No-frills service
    • Secondary airports