The Evolution of the US Airline Industry : Theory

Fierce competition between Airbus and Boeing and plummeting new aircraft prices in the early 2000s fueled low-cost competition of unprecedented scope that destroyed the old business model. This book discusses the evolution of the hub-and-spoke network system and the associated price discrimination strategy, as the post-deregulation dominant business model of the major incumbent airlines and its breakdown in the early 2000s. The book debates the impact and merit of government regulation of the industry, and examines uncertainty, information problems, and interest group structures that have shaped environmental and safety regulations.