AIRLINES AS OLIGOPOLIES
Carriers & Market Share
- Definitely true as few Airlines control the world market.
High barriers to entry.
- Restricted terminal space at major airports.
- Hub domination by existing airlines.
- Frequent flyer programs & Travel Agent biases.
- Regulation and Technological factors.
- Stage 3 noise regulation.
Economy of scale.
- Labor Specialization ? Higher Efficiency & Lower costs.
- Use of Technology.
- Development of CRS ? Several billion US Dollars.
- Sale of by-products e.g. flight simulators.