The U.S. Airline Industry in 1995

2017 ◽  
pp. 1-38
Author(s):  
James D. Dana ◽  
David A. Schmitt
Keyword(s):  
Airline Industry ◽  
Industry Structure ◽  
Industry Analysis ◽  
Hub And Spoke ◽  
Cost And Benefit ◽  
Basic Industry ◽  
And Performance ◽  
Point To Point ◽  
Domestic Airline ◽  
The U.S

Provides an overview of the domestic airline industry. Offers details on industry structure and performance necessary for basic industry analysis (or five forces analysis). Also emphasizes cost and benefit drivers, especially hub-and-spoke vs. point-to-point service and sources of differentiation.

scholarly journals A Framework for Modeling "Real-Life" Airline Networks

2009 ◽  
Vol 8 (3) ◽  
Author(s):  
Volodymyr Bilotkach
Keyword(s):  
Airline Industry ◽  
Real Life ◽  
Cost Savings ◽  
Hub And Spoke ◽  
Mixed Network ◽  
One Stop ◽  
Set Up ◽  
Point To Point ◽  
The One ◽  
The Cost

This paper develops a new model, which allows for the co-existence of hub-and-spoke and point-to-point networks in the airline industry. Passengers are segmented between the non-stop and one-stop services. In the baseline model, the monopoly airline’s ability to segment the market and effectively set up the mixed network depends on the cost savings due to the through-hub service relative to exogenous quality difference between the one-stop and non-stop flights. Socially inefficient entry with the new non-stop service where an incumbent is operating the hub-and-spoke network is possible.

scholarly journals Determinants of Profitability and Recovery from System-Wide Shocks: The Case of the Airline Industry

2012 ◽  
Vol 2 (1) ◽  
pp. 1 ◽  
Author(s):  
Benny Mantin ◽  
Jen-Hung Edward Wang
Keyword(s):  
Airline Industry ◽  
Operations Strategy ◽  
Security Measures ◽  
Quarterly Data ◽  
Domestic Airline ◽  
The U.S

This paper examines the determinants of profitability in the U.S. domestic airline industry, segmented into: operations strategy, productivity, and service measures, using quarterly data between 1995 and 2007. The analysis is performed separately on data prior and post 9/11 attack, revealing, among others, that after 9/11 the profitability of full-service carriers is improving faster than that of focused carriers, and that passengers are more forgivable to service glitches after 9/11 or possibly are associating lack of service with the intensified security measures imposed after 9/11. Focusing the analysis on determinants of consumers’ complaints we find further support for these arguments.

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