The Airline Industry

Paper Summary:

This paper presents an in-depth examination of the airline industry and the recent arguments over whether airline companies are being conducted as monopolies or competitors. The paper uses several examples of congressional testimony to illustrate the differences between the two. The paper also uses other chosen pieces of literature to discuss the difference between an airline monopoly and competition.

Outline:
Introduction
Monopoly
Conclusion

From the Paper:

"What happens in a monopoly situation is that a large strong airline sees a new, financially weaker competitor coming into an area and decides to drop its prices so low there is no way that the smaller, newer airline can compete. The larger airline loses money on the fares but because it has such a strong financial foundation it can afford to lose money long enough to drive the smaller airline out of the area or hub. Once that happens the larger airline immediately doubles or triples its prices to get the customer to pay for all of the money lost during the wait out with the smaller airline. "

Sample of Sources Used:

• Kennedy, Tony (1997) Reno Air files suit against NWA; Reno Air opened daily passenger service between Minneapolis-St. Paul and Reno-Lake Tahoe in April 1993. The airline retreated from Minnesota within 90 days. In antitrust action, the carrier is accusing Northwest Airlines of using its monopoly power to force it out of the Twin Cities.(BUSINESS) Star Tribune (Minneapolis, MN)
• Le, Thuong T. (1997) Reforming China's airline industry: from state-owned monopoly to market dynamism. Transportation Journal
• Kaplan, Peter (1998) Cities, Small Airlines Protest Giant Carriers' Local Monopolies.
• Knight Ridder/Tribune Business News
• Kennedy, Tony (1997) Northwest sued over alleged fare overcharges; A lawsuit claims that the 1986 Northwest-Republic airline merger created monopoly pricing and seeks a massive refund for ticket buyers.(NEWS) Star Tribune (Minneapolis, MN)

More papers on The Airline Industry:

• Term Paper # 132168 : "The Airline Industry and Spare Parts"
• Analytical Essay # 121690 : "The Airline Industry"
• Analytical Essay # 111421 : "The Airline Industry"
• Analytical Essay # 83537 : "The Airline Industry."

APA Citation:

MLA Citation: