Airline Industry
Airline Industry Analysis
Page 1 of 15
Memorandum
Date: Subject: To: From: July 13, 2009 Airline Industry Analysis Dr. Matt Ford Adam Brown, Radmila Gogzheyan, Greg Huwel, Marie Meininger, Josh Riedel, Christina Ryan
Introduction The following is an analysis of the airline industry. Using collected information and Porter’s “Five Forces” model, we will provide information about the attractiveness of the airline industry and provide a recommendation based on that information. Industry Background We will be outlining the Scheduled Air Passenger Transportation, NAICS number 481111 “This U.S. industry comprises establishments primarily engaged in providing air transportation of passengers or passengers and freight over regular routes and on regular schedules. Establishments in this industry operate flights even if partially loaded. Scheduled air passenger carriers including commuter and helicopter carriers (except scenic and sightseeing) are included in this industry.1” We will focus on domestic travel, that is, travel within the continental United States. We have also limited our scope to include only flights that carry passengers or passengers and cargo. Flights carrying exclusively cargo will be excluded. Geographic Scope Airlines performing passenger flights within the continental United States will be focused on. Flights outside the continental United States and flights carrying only cargo are not included in this analysis. Each airline is located at a number of locations in major cities, at major airports, all over the country. Some airlines have hubs at multiple airports all over the country. Many airports are hubs for multiple airlines.
1
http://www.census.gov/cgi-bin/sssd/naics/naicsrch
Airline Industry Analysis
Page 2 of 15
Supply Chain Inputs: Air Planes Fuel Water Lavatory Items Concession Items Equipment Labor Process: Fleets of planes constantly performing flights or preparing for the next flight Output: Providing ontime flights
Page 1 of 15
Memorandum
Date: Subject: To: From: July 13, 2009 Airline Industry Analysis Dr. Matt Ford Adam Brown, Radmila Gogzheyan, Greg Huwel, Marie Meininger, Josh Riedel, Christina Ryan
Introduction The following is an analysis of the airline industry. Using collected information and Porter’s “Five Forces” model, we will provide information about the attractiveness of the airline industry and provide a recommendation based on that information. Industry Background We will be outlining the Scheduled Air Passenger Transportation, NAICS number 481111 “This U.S. industry comprises establishments primarily engaged in providing air transportation of passengers or passengers and freight over regular routes and on regular schedules. Establishments in this industry operate flights even if partially loaded. Scheduled air passenger carriers including commuter and helicopter carriers (except scenic and sightseeing) are included in this industry.1” We will focus on domestic travel, that is, travel within the continental United States. We have also limited our scope to include only flights that carry passengers or passengers and cargo. Flights carrying exclusively cargo will be excluded. Geographic Scope Airlines performing passenger flights within the continental United States will be focused on. Flights outside the continental United States and flights carrying only cargo are not included in this analysis. Each airline is located at a number of locations in major cities, at major airports, all over the country. Some airlines have hubs at multiple airports all over the country. Many airports are hubs for multiple airlines.
1
http://www.census.gov/cgi-bin/sssd/naics/naicsrch
Airline Industry Analysis
Page 2 of 15
Supply Chain Inputs: Air Planes Fuel Water Lavatory Items Concession Items Equipment Labor Process: Fleets of planes constantly performing flights or preparing for the next flight Output: Providing ontime flights