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Airline Industry

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

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  1. Airline Industry • Is this a profitable industry? • How do Five Forces account for profits? • How do airlines compete?

  2. Delta US Airways United American Northwest Continental TWA Southwest Alaskan Midwest ComAir ASA Major Players

  3. Differentiators/Niche Players? • JetBlue • “Low cost” Business-class only • Virgin • Sleeping space • Showers • Pick-up Service • Back massage

  4. Airline Industry Profitability

  5. Capacity Utilization Available Seat-Miles (in millions)

  6. 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

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