The airline industry has a main focus and that would be their customers and the satisfaction that is relayed to them. Their mai

By the 70's, CAB's policies became hard to defend as studies showed it to prevent competition, cause inefficiency, and raise airfare by 50%. By 1975, both parties of the government promised reduced airfares, improve consumer choices, enhance efficiency and productivity and to "get government out of the marketplace" An act was passed in 1978 that enforced free entry into the market by 1980 and free prices by '83. In 83, more than 60 new carriers entered the industry, cutting fares by 20 to 40%. Prices began to fall. However, the existing airlines (United and American) began to takes measures such as "hub systems" (which made direct fights into two-part flights) and price discrimination to channel passengers their way.

Today, there has been an important growth of strategic alliances in the airline industry because of the airlines wanting to compete at a global scale. Airlines are cooperating with other carriers through alliances. There are four major airline alliance groups. Star alliance led by Lufthansa and United Airlines and Oneworld led by American Airlines and British Airways each have about twenty per cent of the world market. The other large groups are Skyteam led by Air France and Delta Airline and the alliance formed by KLM and Northwest Airlines. Often the decision of starting a partnership is driven by the need for new market access, economic factors such as economies of scale to increase volume and revenues, or motives associated with sharing expertise and technology. Also some companies are looking for a brand improvement, being in an alliance will provide companies to gain popularity thanks to the reputation of the industry leaders.

n concern is the people aboard. The customer needs to know that their trip will be easy, safe and somewhat relaxing. The airline industry has had to really focus on customer satisfaction since the tragedy of 9-11. After the huge economic boom, the industry has had to re-evaluate their strategic planning of staying afloat. This event was with out a question, a threat to the industry. Their planning and procedures have had to become very lengthy and drawn out to be able to provide the correct and appropriate customer satisfaction that is needed to keep the consumers around.

This industry is an example of an industry that is growing and trying to stay afloat even though the economy is slowing down and consumers are becoming more attached to not spending income so rapidly. With there being a huge impact on the pressure of the economy, the trends within the U.S. Airline Industry has changed over the years. The main focus that the consumers demanded a more competitive industry by seeing lower prices. Under the Deregulation Act, which passed in 1978, it declared that there needed to be a way to promote competition among carriers by lowering the costs of usage and increasing the efficiency. This caused the airlines to push and execute all they had to satisfy the consumers. This also influenced the industry and allowed existing carriers to enter and exit markets freely. They had to charge prices according to the current demand but this allowed them to flow in and out of the industry as they needed.

Some topics in this essay:
Industry Industries, Department Transportation, Northwest Airlines, Aeronautics Board, Deregulation Act, Meanwhile JetBlue, Cost Drivers, Australian Dollar, Industry Threats, Japan America, airline industry, regional airlines, strategic alliances, cost drivers, major airlines, southwest airlines, strategic planning, exchange rate, factors influence, consumers travelers, act passed 1978, profitability airline industry,