Abstract

The US airline industry traces its roots to 1903, when the Wright Brothers accomplished the first successful flight. In over a century of evolution, the industry has undergone a number of changes. The case discusses the major events that occurred in the US airline industry over the years, such as deregulation, the Gulf War and September 11 attacks, and their effects on the dynamics of the industry. The structure of the industry is determined by analyzing its key strategic dimensions. The case also discusses the key challenges faced by the industry and concludes with an examination of consolidation as an option for the future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evolution of the US Airline industry
• Structure of US Airline industry
• Low-cost airlines.

Keywords

US Airline Industry, Low cost carriers, US Airways, Southwest Airlines, JetBlue Airlines, United Airlines, Delta Airlines, Debt burden, No-frills airlines, Labor unions, Legacy carriers, Frequent Flier programs, Overcapacity, Rising Fuel Prices and Consolidation