The Evolution of the US Airline Industry

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Beschreibung

For over three decades the airline industry has continued to maintain a high profile in the public mind and in public policy interest. This high profile is probably not surprising. There does seem to be something inherently newsworthy about airplanes and the people and companies that fly them. The industry was one of the first major industries in the United States to undergo deregulation, in 1978. It thereby transitioned from a closely regulated sector (the former Civil Aeronautics Board tightly controlled everyt thing from prices to routes to entry) to one that is largely market oriented. The incumbent carriers transformed themselves from the point-to-point operators that the CAB had required to the hub-and-spokes structures that took better advantage of their network characteristics. Further, they transformed their pricing from the quite simple structures that the CAB had required to the highly differentiated/segmented pricing structures (¿yield management¿) that reached an apogee in the late 1990s. Some ca arriers, like American, Delta, and United, were better at this transition; others, like Pan American, TWA, and Eastern, were not. What the incumbent carriers did not do, however, was deal with their costly wage and work rules structures, which were an enduring legacy of their regulatory period. This legacy, when combined with the high-fare end of the yield-management pricing structure, has made them vulnerable to entry by new carriers with lower cost structures.

Über den Autor

President and owner of

Aeron Aviation Resources, Inc.

Education:

B.A Economics and Management Bar Ilan University, Israel

M.Sc. Economics and Management School of Agriculture Hebrew University, Israel

Ph.D. International Business and Economics Stern Business School, NYU, USA.

Zusammenfassung

Fierce competition between Airbus and Boeing and plummeting new aircraft prices in the early 2000s fueled low-cost competition of unprecedented scope that destroyed the old business model. This book discusses the evolution of the hub-and-spoke network system and the associated price discrimination strategy, as the post-deregulation dominant business model of the major incumbent airlines and its breakdown in the early 2000s. The book debates the impact and merit of government regulation of the industry, and examines uncertainty, information problems, and interest group structures that have shaped environmental and safety regulations.

Inhaltsverzeichnis

Economic Deregulation.- Deregulation.- Aircraft.- Destructive Competition.- Noise And Safety Regulation.- Social Regulation.- Noise Regulation.- Safety Regulation.- Overview.- Competition.- Yield Management.- What Next?.- On Theory and Policy Implications.

Details

Erscheinungsjahr:	2005
Fachbereich:	Einzelne Wirtschaftszweige
Genre:	Wirtschaft
Rubrik:	Recht & Wirtschaft
Medium:	Buch
Seiten:	312
Reihe:	Studies in Industrial Organization
Inhalt:	x 298 S.
ISBN-13:	9780387242132
ISBN-10:	0387242139
Sprache:	Englisch
Ausstattung / Beilage:	HC runder Rücken kaschiert
Einband:	Gebunden
Autor:	Ben-Yosef, Eldad
Auflage:	2005
Hersteller:	Springer US Springer US, New York, N.Y. Studies in Industrial Organization
Maße:	241 x 160 x 22 mm
Von/Mit:	Eldad Ben-Yosef
Erscheinungsdatum:	13.07.2005
Gewicht:	0,635 kg

preigu-id: 102362129