The International Airline Industry Research Paper by Research Group

In the international airline industry, the notion that "bigger is better" has led to industry-wide consolidation via mergers and acquisitions as national barriers to market expansion are diminished. At the same time, there are growing concerns being expressed by consumers and regulatory agencies alike that consolidation of airlines on a global scale may not necessarily be in the best interest of these groups. The airlines may be opening the door to some kind of re-regulation both in the United States and in Europe. This paper examines these matters in the context of an international industry environment that faced difficult times in 1999, when a rise in fuel prices and growing market competition drastically effected the budgets of both domestic and international carriers. An overview of the industry is followed by a discussion of hub systems and their effects, code sharing agreements and strategic alliances, internet ticket sales and related matters.