Porter’s Five Forces Analysis of Frontier Airlines in the Passenger Airline Industry

Frontier Airlines

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Is the industry attractive for Frontier or not?..............................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Airline industry refers to the organisations that are offering air transport services to the
customers whereas on the other hand the aviation industry includes all set of aviation related
businesses. Airline industry is one of the sector that is included in the wider aviation industry
(Tahanisaz, 2020). Further this industry provides services of travelling passengers along with the
transportation of freight. In this report, Porter’s five force analysis of airline industry is done so
that the attractiveness of airlines can be analysed. Frontier Airlines is an American low cost
carrier service that is headquartered in Denver, Colorado. They are further coming back into the
operations and that is why the overall airlines industry is further analysed and evaluated.
Main Body
Undertake Porter’s Five Forces analysis of the passenger airline industry.
Porter’s five forces analysis is a business analysis model that evaluates the five forces
which impact the structure of the company and the industry. This model was proposed by Michel
E Porter in order to analyse the strengths and weakness of the industry and how the organisations
can take advantage of these strengths and weakness in order to enhance efficiency and
profitability. This model is effective as it helps the company in ensuring that if the organisation
should enter in the industry or not. Maximum number of forces in the industry being in the
support of the organisation ensures that the company will have good growth prospects in the
industry. Further the Porter’s five forces analysis is done on the airline industry in order to
understand the matrix of the industry, so that Frontier Airlines can make a rigid decision:
Power of Suppliers- One of the major factor of any industry is their suppliers, they play a
major role in the profitability and sustainability of the business in the industry (Jalalian, Gholami
and Ramezanian, 2019). The power of suppliers refers to the ability of the suppliers to bring a
change in the prices of the services and the type of services that they are currently providing in
the industry. Airlines industry is a high cost sector due to which there are limited number of
suppliers in the industry. A limited number of suppliers in the industry shows that they hold high
power of influencing the price and services in the industry. Therefore, the bargaining power of
suppliers in the airline industry is high as airlines have limited number of options and the other
supplier follows the strategy of pricing and services. This is a major concern in the airline
industry as the suppliers holding high power can change the working of the business in the