References Analysis sheds light on impact of airline consolida on

References analysis sheds light on impact of airline

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References: Analysis sheds light on impact of airline consolida ! on. (July 14, 2015). CBS News. Retrieved from h % ps://- on-impact-of-airline-consolida ! on/ Khan, A.E. (2002). Airline Deregula ! on. Retrieved from h % ps:// ! on.html McDonnel, G. (2015). What caused airline deregula ! on: Economists or economics? Retrieved from h % ps://search-proquest- com.ezproxy.libproxy.db.erau.edu/docview/1643164553?pq-origsite=summon Andrew Neel Aug 21, 2020 # Reply " Christopher, The few rule the many is in e ff ect what is happening, but this seems to be an evolving scenario also. In the recent past new airlines pop up that have been e ff ec ! ve. These airlines o ff er a service that might be a bit di ff erent from the main carriers. An example is when Southwest Airlines started, they were a bit di ff erent from the norm in that they did not assign sea ! ng and they served a smaller area, this enabled them to o ff er their services at a lower price. They were successful and have grown drama ! cally since their incep ! on. Spirit airlines o ff ers cut rates with fewer luxuries and it seems they are doing well. These scenarios are obviously pre pandemic and it will be interes ! ng to see how airlines survive this disaster and whether or not they change their way of opera ! ng. Good post Christopher. Andrew Christopher Ross Aug 23, 2020 # Reply " Hello Andrew, Southwest airlines is an excellent example of how an airline can fill a niche and expand upon their success. While I stated earlier how larger airlines might merge with or acquire regional players to increase their profits, you've reminded me how airlines can replicate successful prac ! ces across the industry. Many airlines have been opera ! ng according to similar models as Southwest's, emphasizing passenger payment for ameni ! es, unifica ! on of aircra $ fleets, and expansion of service on exis ! ng routes. Much of la % er concept is explained here: The e ff ect of the airline’s entry occurred in three stages. Firstly, they increased supply and o ff ered lower prices on that route. This would lead the incumbent airlines to lower their fares in order to compete. As a result, the third element of the Southwest E ff ect would be that sales for all airlines would rise. The lower prices would lead to an increased demand for air travel, meaning that even those airlines who had to lower fares would see a rise in profits as a result of be % er load factors. (Bailey, 2019) I have seen the e ff ect of greater supply and lowered fares first hand. In my region Alaska Airlines is the largest airline and they have a substan ! al fleet of 737 aircra $ that enables a consistent half-hour departure rate. This facilitates scheduling for passengers as they have many op ! ons for ! ming their departures and arrivals. This degree of flexibility is possible due to increased supply of aircra $ and crews and has been replicated by many domes ! c airlines. Another considera ! on of this supply increase is the overall manageability of the fleet gained through e ciencies from having a common airframe. Maintenance and training costs are reduced while availability is increased.
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