Transcript of US Airline Industry
JONATHAN - 1. Assess the overall financial performance of the US airline industry during the past 20 years BLANCA - 2. To what extent can the industry’s low average profitability during this period be attributed to the structure of the industry? Which of Porter’s five forces has had the biggest impact in depressing industry profitability? DARYL - 3. What is the outlook for industry profitability during the next five years (2010-2014)? RUDY - 4. Are there any strategies that the airlines have deployed which have influenced industry structure and moderated the intensity of price competition? Are there strategies that the airlines could use to improve future industry profitability? The airline industry was gradually progressing and establishing a strong growth in their profit, but soon after 9/11 they were in a chaotic state and suffered the largest lost since the early 90’s. According to the Bureau of Transportation Statistics, the airline industry lost about $24 billion in profit in all domestic flights from 2001 through 2005. the airlines industry from suffered a major lost of nearlyFull transcript
5 % in profit from 1990 thru 1994.