Industry Analysis of Us Airlines
MGT489
Industry Analysis of US airlines
Industry Structure
US airlines have been improved substantially over past few years | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013(Q1) | On-time arrival rate (% of domestic flights within 00:15) | 73.4 | 76 | 79.5 | 79.8 | 79.6 | 81.9 | 80.01 | Involuntary denied boardings (per 10000 passengers) | 1.12 | 1.10 | 1.19 | 1.09 | 0.82 | 0.99 | 1.06 | Mishandled bags (per 1000 passengers) | 7.05 | 5.26 | 3.91 | 3.57 | 3.39 | 3.09 | 3.15 | Flight cancelations (% of scheduled domestic departures) | 2.16 | 1.96 | 1.39 | 1.76 | 1.91 | 1.29 | 1.82 | Customer complaints (per 100,000 systemwide passengers) | 1.37 | 1.13 | 0.97 | 1.20 | 1.18 | 1.42 | 1.13 |
A4A passenger airlines have 1299 aircrafts on order for delivery through the end of 2022 Airlines | No. of ordered aircrafts | American Airlines | 325 | Delta | 118 | Hawaiian | 34 | Jet Blue | 114 | Southwest Airlines | 321 | United | 249 | US Airways | 72 |
Billions Invested for aircrafts, engines, winglets, spare parts, ground equipment, loading bridges, aircraft interior, passenger terminals, aircraft hangers, maintenance, technology, inflight entertainment, carts, scanners etc.
U.S. Airline Industry Forces
Supplier Power
Supplier power in the U.S. airline industry is high as passenger jets are the most significant cost for airlines and there are only a handful of suppliers. Additionally, planes must be ordered far in advance, leaving airlines with little choice but to place orders in anticipation of industry growth. Major U.S. airlines have only two primary choices for supply of their jets and there can be significant differentiation between products from the perspective of the airlines. The long-term nature of these purchases creates a long-term relationship whereby the airline is often motivated to purchase the same kind of jets to reduce maintenance and service costs, adding to the leverage held by major jet suppliers.
For the
Industry Analysis of US airlines
Industry Structure
US airlines have been improved substantially over past few years | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013(Q1) | On-time arrival rate (% of domestic flights within 00:15) | 73.4 | 76 | 79.5 | 79.8 | 79.6 | 81.9 | 80.01 | Involuntary denied boardings (per 10000 passengers) | 1.12 | 1.10 | 1.19 | 1.09 | 0.82 | 0.99 | 1.06 | Mishandled bags (per 1000 passengers) | 7.05 | 5.26 | 3.91 | 3.57 | 3.39 | 3.09 | 3.15 | Flight cancelations (% of scheduled domestic departures) | 2.16 | 1.96 | 1.39 | 1.76 | 1.91 | 1.29 | 1.82 | Customer complaints (per 100,000 systemwide passengers) | 1.37 | 1.13 | 0.97 | 1.20 | 1.18 | 1.42 | 1.13 |
A4A passenger airlines have 1299 aircrafts on order for delivery through the end of 2022 Airlines | No. of ordered aircrafts | American Airlines | 325 | Delta | 118 | Hawaiian | 34 | Jet Blue | 114 | Southwest Airlines | 321 | United | 249 | US Airways | 72 |
Billions Invested for aircrafts, engines, winglets, spare parts, ground equipment, loading bridges, aircraft interior, passenger terminals, aircraft hangers, maintenance, technology, inflight entertainment, carts, scanners etc.
U.S. Airline Industry Forces
Supplier Power
Supplier power in the U.S. airline industry is high as passenger jets are the most significant cost for airlines and there are only a handful of suppliers. Additionally, planes must be ordered far in advance, leaving airlines with little choice but to place orders in anticipation of industry growth. Major U.S. airlines have only two primary choices for supply of their jets and there can be significant differentiation between products from the perspective of the airlines. The long-term nature of these purchases creates a long-term relationship whereby the airline is often motivated to purchase the same kind of jets to reduce maintenance and service costs, adding to the leverage held by major jet suppliers.
For the