Please read Us airline industry in 1995 case and chapter8 and 9 in textbook
Background on Assignment ( I will upload the case and textbook)
Substantial regulation of the U.S. Airline Industry began in 1938, with the creation of the Civil Aeronautics Board (CAB). The CAB was given the authority to regulate the prices airlines can charge on flights, entry and exit into the market, as well as mergers and acquisitions between airlines. The airline industry was deregulated in 1978. The U.S. Airline Industry case talks about the airline industry following deregulation.
Assignment
1) Write a paper that discusses actions undertaken by airlines following deregulation.
Describe what the internal rivalry and entry/exit components of the 5-forces measure. For each of the following items, state what component of the 5-forces (internal rivalry, entry/exit) each item would most directly impact (items are the entry of new airlines, frequent flyer programs, airport slots, corporate discounting, airline pricing (page 10 of case). Describe how each item would likely impact industry profits (increase, decrease, not change), and the reason for the impact. Based on how each item affects industry profits, state whether the corresponding component would be a low or high threat to industry profits.
