U.S Airline Industry

  Substantial regulation of the U.S. Airline Industry began in 1938, with the creation of the Civil Aeronautics Board (CAB). The CAB was given the authority to regulate the prices airlines can charge on flights, entry and exit into the market, as well as mergers and acquisitions between airlines. The airline industry was deregulated in 1978. The U.S. Airline Industry case talks about the airline industry following deregulation. Write a paper that discusses actions undertaken by airlines following deregulation. Provide a definition of what the internal rivalry and entry/exit components of the 5-forces in general measure. For each of the following items, state what component of the 5-forces (internal rivalry or entry) each item would most directly impact (items are the entry of new airlines, frequent flyer programs, airport slots, corporate discounting, airline pricing (page 10 of case). Given what is happening to each item in the case, if more of this happening, then for each item state whether having more of the item happening would cause the magnitude of the component to decrease, increase, or not change. Would what happens to the magnitude of the component lead to a higher threat, lower threat, or no change in the threat to industry profits.