The Airline Industry
In 2001, commercial airlines carried nearly 450 million passengers for leisure, personal, and business travel, an increase of approximately 250% since the 1978 industry deregulation. Despite this long-term growth, the number of passengers increased only about 1.5% annually from 1997 to 2001. The airlines were buffeted by both economic and exogenous factors that coincided with particular force. In 2002 and early 2003, virtually every major carrier was under bankruptcy protection or claimed to be on the verge of bankruptcy (Brooks, 2007).
The airline industry is characterized by an oligopoly market structure, a form of imperfect competition in which a limited number of firms dominate the industry. Oligopoly firms have market power in setting or altering prices for their products by establishing various output levels. Since airlines produce similar outputs and compete with their industry rivals, any action a competing airline takes is noticed by its competitors.......

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Title: The Airline Industry
Approximate Word Count: 1930
Approximate Pages: 8 (250 words per double-spaced page)

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