Airline Industry Essay

1. Analysis manufacture Airline IndustryIn the case study two groups of competitors were acknowledge legacy carriers and the low toll carriers (LCC). The legacy carriers included most of the known U.S. Airlines, like United, Delta or American Airlines. These air lanes used the Hub and Spoke ideal as their operations system. The LCC, including used a different type of operations model called the Point to Point Model, pioneered by Southwest Airlines. In 2001 numerous airlines cut the traditional longer routes in order to reduce be and the demand for smaller regional routes begins to expand rapidly, helping regional carriers to father much more profitable.General EnvironmentDuring this time the airline diligence faced many changes receivable to the general environment. Even though, there were really(prenominal) small differences between the cultures of each airline. There were other aspects of the environment at the time that were affecting the industry. The airlines were e xperiencing softening demand and higher costs due to increasing fuel prices which lead airlines to begin operating much more regionally. But there were other reasons that lead to this as well. The low cost carriers began targeting a new low budget customer, which lowered their fairs up to 65% than that of legacy carriers. There was also an emerging market with Business Customers, who were very demanding in riotous airlines that would ensure that they would arrive on time to their destination. This was a great advantage for Jet Blue Airlines, since its operating principal was ground on not canceling flights. There were also much more concentrate cities like New York or Washington that had greater demand for flights than others.At the time, many airlines began to try and mimic Southwests LCC model mentioned above, moreover deregulation, fare wars, amongst other problems arising, made it impossible. The 9/11 terrorist attacks made the airline industry go through and even more downf all, where the demand for flying by customers dropt significantly, leaving many competitors under bankruptcy protection.