Economic on Air Transport Management

8430 WordsAug 15, 200934 Pages
CONTENT 4.0 Introduction 1 4.1 Aviation as Oligopolies 2 4.1.1 Number of Carriers and Market Share 2 4.1.2 High Barriers to Entry 4 4.1.3 Economic of Scale 6 4.1.4 Growth through Merger 9 4.1.5 Mutual Dependence 10 4.1.6 Price Rigidity and Non-price Competition 11 4.2 Government Financial Assistance 13 4.3 Technology Cycle 19 4.3.1 High Technology Turnover 19 4.3.2 EUROPEAN RESEARCH STRATEGIES FOR THE FUTURE 22 4.3.3 Clean Sky Joint Technology Initiative Research 23 Program by the European Commission 4. Human Resource and Fuel Consumption 28 4.4.1 Human Resource 28…show more content…
The established major airlines, with the exception of those that were failing, shared in the traffic growth, but the new entrants made substantial inroads into market share. Between 1978 and 1986, the share of total traffic of incumbent trunk airlines declined from 94 percent to 77 percent. In this period, there were 198 certificated carriers priers providing interstate passenger service in the United States. If we were to add the 36 carriers operating before deregulation, this would give 234 carriers operating at the start of 1987. The total number has increased in recent years with the addition of smaller certificated carriers and the demise of some of the larger airlines, including Eastern and Pan Am. The shrinking number of larger carriers has improved the market share of the remaining major carriers, such that the largest carriers now have a somewhat greater market share than before deregulation. Commuter air ravel followed a similar pattern, with the number of service providers reaching 246 in 1981 and declining to 109 by the end of 1996. Despite this consolidation, RPMs increased almost sevenfold, from 2.1 billion to 14.2 billion. At the end of 1996, 35 of the top 50 commuter airlines have code-sharing agreement with one or more major or national carrier. Those 50 airlines controlled 99 percent of the total commuter market share. The

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