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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
11 / 3022 |
Essay's paper body
has seen hundreds of airlines start up (sometimes for only a brief operating period). This has produced far greater competition than before deregulation in most markets, and average fares tend to drop 20% or more, spurring new sources of demand. The added competition, together with pricing freedom, means that new entrants often take market share with highly reduced rates that, to a limited degree, full service airlines must match...
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This is a major constraint on profitability for established carriers, which tend to have a higher cost base.
Interfirm Rivalry/Threat of new entrants
The reputation of Southwest Airlines does not really have any blemishes that spoil it. Their main competition includes AMR Corp (American Airlines and American Eagle), Delta Airlines, JetBlue Airways Corp...
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