Air Transport Industry: An Oligopoly Market


Added on  2019-09-21

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Running head: AIR TRANSPORT INDUSTRYAir Transport IndustryStudent Name:Course work:University:

AIR TRANSPORT INDUSTRY1Air transport industry is characterized as an oligopoly market. The aircraft manufacturers are having control over price. The oligopoly market has four companies who are covering fifty percent of the market. The air transport market has few major players who are denominating the market. According to the US airlines market, the four largest markets are having 60.1% share of the total market, and it shows the oligopolistic situation. The mergers between the US Airways and America West took the sixth position in the list. The merger affects the market share of airlines which is another characteristic of an oligopolistic market. Another merger between the United and continent concentrate 69.3% of the market (Hüschelrath et al., 2016). The airlines provide oligopolistic services in the market. The main elements of market feature include a smallnumber of suppliers, the barrier to entry and common product types. The airline's suppliers are mainly four who owned the total market share of Airlines industry. The new companies face the difficulty at the time of enters and exit in the airlines market. The barriers include a huge amountof capital investment, scarcity of resources, legislative restrictions, and patent restrictions. The products produced in the oligopoly market are very similar with no distinction at all. The air transport industry competitors manufacture similar goods which reflect that the air transport industry is an oligopoly market. The features of market behavior include interdependence, merger and acquisition and non-price competition (Vasigh et al., 2013). The air transport industry is influenced by the market which causes the players to respond by changing the price, movement, and others. The merger and acquisition took place in the air transport industry which involves substantial marketplace control. The merger in the air transport industry took place, and it impacts on the market share. For example: a merger between the US Airways and America west results into the sixth position in the market. The non-price competition is the feature of air transport industry. The competitors are not preferred to compete on price, and they prefer to

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