Has the 'Golden Rule' Lost its Aura? Revisiting Multimarket Contact in the U.S. Domestic Airline Industry

Author(s):  
Ramnath K. Chellappa ◽  
Raymond G. Sin ◽  
Vallabh Sambamurthy
Author(s):  
James D. Dana ◽  
David A. Schmitt

Provides an overview of the domestic airline industry. Offers details on industry structure and performance necessary for basic industry analysis (or five forces analysis). Also emphasizes cost and benefit drivers, especially hub-and-spoke vs. point-to-point service and sources of differentiation.


2012 ◽  
Vol 2 (1) ◽  
pp. 1 ◽  
Author(s):  
Benny Mantin ◽  
Jen-Hung Edward Wang

This paper examines the determinants of profitability in the U.S. domestic airline industry, segmented into: operations strategy, productivity, and service measures, using quarterly data between 1995 and 2007. The analysis is performed separately on data prior and post 9/11 attack, revealing, among others, that after 9/11 the profitability of full-service carriers is improving faster than that of focused carriers, and that passengers are more forgivable to service glitches after 9/11 or possibly are associating lack of service with the intensified security measures imposed after 9/11. Focusing the analysis on determinants of consumers’ complaints we find further support for these arguments.


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