Recommendations of where the industry will be in 2001 The airline industry will undoubtedly expand and become increasingly more competitive in the next year. The likelihood of new airlines is slim but possible mergers are not. Companies become very powerful when joined with eachother and in the airline industry is no different. We look to see technologies that will facilitate both purchasing tickets and flying in general to increase and become more prominent as consumers become more sensitive to time constraints. Safety issues will receive a great deal of attention and standards will continue to increase. Price wars will become more intense and enable certain carriers to separate themselves from the competition by finding a way to provide quality at a lower price. How to Position a Firm Successfully in the Airline Industry A firm should first decide which niche they are to be a part of to be successful in the airline industry. A successful firm will likely enter an area with little competition, such as Alaska did on the west coast. Granted some carriers fly all over the world, gaining a foothold in a smaller niche is the smart way to go. A firm may also consider looking into a merger or alliance to strengthen their position in the industry. Putting the best of two companies together could be a definite bonus in the future with the likelihood of intense competition becoming a major factor. Developing a technique or technology that is not currently used by another airline and using it through a larger airline may be a smart move. Some amount of capital should be devoted to improving technology because it is, in a sense, the power of the future.…
