Airline industry analysis using porter's five forces

1. Airline Industry Ray Khorasani Gustavo Garcia Ernest Casiano Jenna vrzal

3. $8.3 Billion loss

4. Government intervention

5. Bankruptcies

6. United, Delta, Northwest

7. 2 types Airline carriers

8. Major (A.A , Delta ,United, U.S airway, continental)

10. Load factor

11. Available Seat-Miles (ASM)

12. Revenue Passenger-Miles (RPM)

15. HIGH CONGESTION OF MAJOR AIRPORTS

16. TIGHTLY REGULATED INDUSTRY

19. RAIL

22. Technology

25. Airline Manufacturer

26. Jet fuel

27. Labor

28. Substitute

31. Intense price competition

32. Slow Growth rate

33. High fixed cost

37. Load Factor

38. Available Seat-Miles (ASM)

39. Revenue Passenger-Miles (RPM)

43. Threat of Substitutes–Moderate

44. Bargaining power of buyer–HIGH

45. Bargaining power of Suppliers–HIGH

46. Degree of competitive rivalry –HIGHOverall NOT attractive Industry