Industry Analysis for the Airline Industry

An Industry in which I have a potential future interest for an entrepreneurial imperil is the ever changing business lineline industry. Although facing tough numbers aft(prenominal) the 9/11 attacks, I have always held an interest for this industry. at that place are several grassroots economic characteristics for this industry. There are some(prenominal) opportunities, there are also many threats. The airline industry was severely regulated by the Civil Aeronautics Board (CAB) for close to 40 years. Eventually, Congress abandoned airline price and service regulation and disbanded the CAB.Since deregulating the airline industry has becoming increasingly competitive. This industry is also rattling large and important to the travel and tourism industry. This industry is also very important in maturation new business strategies amongst different industries. beforehand working with any industry, you should take steps to analyze it. The two basic types of air travel are comm ercial aviation and general aviation. General aviation deals with operating you aircraft more for internal purposes. Commercial deals more with carrying passengers or commitment for hire.The schedule airline industry is more of commercial aviation. The first scheduled airline service started in the 1920s. There have been a nap of eventful history in this industry including periods of rapid growth and prosperity, rapid technological change, federal regulation of prices and routes, entry and exits of firms, bankruptcies, rivalries, financial losses, and problems in condom and security. However, the industry had become one of the most important factors of todays transportation infrastructure.The knock back below displays how much the industry has grown over the years. Table 7. 1 Annual U. S. Passenger Enplanements by Scheduled Airlines, 1930-2004 ( millions of persons) Source Air place Association, Annual Operations, Traffic and Capacity, www. airlines. org/econ/d. aspx? nid=1032 There are many rivalries in the air line industry. The Federal Aviation Administration (FAA) divides the firms in the airline industry into three categories. Group 3 consists of airlines that foregather at least $1 billion in yearly revenue.National, or Group 2, are those who gain between $100 million and $1 billion in annual revenue. The last group is Regional, or Group 1, which gains less than $100 million in annual revenue. In Group 3, United, American, and Delta holds the top 3 espy in revenue, revenue passenger miles, and available seat miles. Porters quint forces is by far the most influential in business strategy. It analyzes business segments and developing entry/exit/investment plans. Below is a model of Porters five forces for American Airlines, one of the most dominant companies of the airline industry.