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Airline Industry

The United States has a great network of extensive air transportation. There are around 86 airports in the U.S. and a number of airlines are working here. Competition in air transportation is tough due to which each of the competitors wants to introduce new and effective strategies so that they could take over the other participants. In the USA, Delta Air Lines, United Airlines and Alaska Airlines who are putting all the efforts for facilitating passengers with the best of services and products that they are able to offer.

Delta Air Lines is commonly known as Delta and is carrying the legacy of being one of the major airlines based in the USA. It’s headquartered is in Atlanta, Georgia and operates nearly 5,400 flights daily serving six continents, 52 countries and 325 destinations (Brochado et al, 2019). Another major airline is United Airlines, Inc. and it’s headquartered in Chicago and is ranked as the third-largest airline in the world. It is known for operating domestic as well as international route network and its founding member Star Alliance has other 28 airlines as its members. Alaska Airlines is also one of the strongest competitors in the air transportation of the USA network having its headquarters in SeaTac, Washington. It was founded by McGee Airways in 1932 and most of its traffic is flown outside of Alaska (Peng, 2016). This airline plays a significant role in linking small towns towards main transportation hubs.

A number of products and services provided by the above-mentioned airlines make them part of the same industry. The main products and services that are common among all three listed airlines include labor for helping passengers, IT services and networks, airport equipment, handling services at the airport, booking commission, advertising, catering (meals and snacks) and well-trained staff.

Questions for discussion

Q. 1

What makes them good competitors?

Q.2

How they differ from each other?

References

Brochado, A., Rita, P., Oliveira, C., & Oliveira, F. (2019). Airline passengers’ perceptions of service quality: themes in online reviews. International Journal of Contemporary Hospitality Management, 31(2), 855-873.

Peng, M. W. (2016). Global business. Cengage Learning.

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