"The environment will continue to become more competitive as the LCC's continue to become more convenient. Business fares will continue to drop. Leisure fares won't raise much until capacity is generally in line with demand, which won't occur until much of the capacity overhand has been employed either by surviving legacy carriers or LCC."
To the customer, the continuing of this trend will generate no benefits. "In other words, we're stuck with the current system, because it isn't really in any airline's interest to try to change it. As long as no airline makes a dedicated effort to distinguish itself from the pack, all the airlines can stay lean, even at the expense of quality."
References
Surowiecki, J., the Unfriendly Skies, the New Yorker, 2007
Jankins, D., Overview of the Domestic Airline Industry, the George Washington University Aviation Institute, www.speea.org/news/files/layoffs/pcfinancials.pptRetrieved on February 13, 2008
Airlines face fiscal problems due to war, the Daily Michigan, September 1, 2003
Quick MBA, Porter's Five Forces - a Model for Industry Analysis, 1999-2007, http://www.quickmba.com/strategy/porter.shtml. Retrieved on February 13, 2008
Levine, M.E., Looking...
Domestic Airline Industry, MIT Global Airline Industry Program 2002-2003, Yale Law School, http://spacestation.mit.edu/airlines/news-articles/articles/news-Levine-2003.pdfRetrieved on February 13, 2008
Done, K., Oil Prices Destroying Airline Profitability, MSNBC, 2007, http://www.msnbc.msn.com/id/8036674/Retrieved on February 13, 2008
High Oil Prices Endanger Future of Airline Industry, EV World, 2006, http://www.evworld.com/news.cfm?newsid=11775Retrieved on February 13, 2008
Surowiecki, J., the Unfriendly Skies, the New Yorker, 2007
Jankins, D., Overview of the Domestic Airline Industry, the George Washington University Aviation Institute
Airlines face fiscal problems due to war, the Daily Michigan, 2003
Quick MBA, Porter's Five Forces - a Model for Industry Analysis, 1999-2007
Surowiecki, J., the Unfriendly Skies, the New Yorker, 2007
Done, K., Oil Prices Destroying Airline Profitability, MSNBC, 2007
Levine, M.E., Looking Back and Ahead: The Future of the U.S. Domestic Airline Industry, MIT Global Airline Industry Program 2002-2003, Yale Law School
Surowiecki, J., the Unfriendly Skies, the New Yorker, 2007
