Describe globalization as it applies to airline industry

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Reference no: EM132860772

Discussion 1.

Describe globalization as it applies to the airline industry. Why is it so difficult for U.S. carriers to establish hubs outside the United States?

Why are bilateral agreements between the United States and many foreign countries to the disadvantage of U.S. carriers?

How would an open-sky agreement improve this situation?

Describe how code-sharing agreements operate. What is the impact on competition? How does the airline industry differ from other industries with regard to globalization?

Discussion 2.

Describe the role of the major and national carriers. Identify some of the carriers in each category.

How did the regional carriers get started?

Describe a typical regional carrier in terms of its role in the air transportation system, type of aircraft flown, and route structure.

What is meant by hub-and-spoke network?

Why has the number of regional carriers declined since deregulation?

Describe some of the changes that have taken place in this segment of the industry. What is code sharing?

Discussion 3.

Why do you think that air carriers are so mutually dependent?

How have pricing practices changed since the prederegulation days?

What was the major form of competition in the prederegulation era? Discuss some of the causes of the price wars in the 1980s.

Do you foresee prices stabilizing in the next several years?

Why is there a tendency in oligopolistic industries toward price rigidity and nonprice competition?

Reference no: EM132860772

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