Here is a Porter's Five Forces analysis of the airline industry:
Introduction: Porter's Five Forces analysis is a framework for industry analysis and business strategy development. It draws attention to five key forces that shape every industry and helps determine the strengths and weaknesses of a company's competitive position. This analysis will examine the airline industry using Porter's Five Forces model.
Threat of New Entrants: The airline industry has high barriers to entry due to large capital requirements for aircraft, maintenance facilities, and airport operations. However, the threat of new entrants is moderate as new budget/low-cost carriers continue to emerge. Established airlines also face competition from new entrants in adjacent industries like rail.
Threat of Substit