US Airline Industry: Strategic Choices and Business Strategy

US Airline Industry
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Table of Contents
Executive summary.....................................................................................................................................ii
Introduction.................................................................................................................................................1
Context........................................................................................................................................................1
Theory.........................................................................................................................................................1
Strategic position of the US airline industry................................................................................................1
Advantages of strategic choice concepts in the US airline industry.............................................................2
Disadvantages of strategic choices on the US airline industry.....................................................................2
Analysis.......................................................................................................................................................2
US airline industry business strategy...........................................................................................................6
US airline industry corporate strategy.........................................................................................................7
Discussion...................................................................................................................................................7
Conclusion...................................................................................................................................................8
Recommendation.........................................................................................................................................9
Bibliography..............................................................................................................................................10

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Executive summary
Just like any other industry in the world the US airline industry has positive and negative
impacts from its operational system. The US airline industry faces political, economic, social,
technological, legal, and environmental factors that affect the industry in general. However, the
industry has strengths and opportunities which helps it to effectively encounter the problems.
Despite the strengths, the industry faces threats in its day to day operation. This is outlined
through the PESTLE analysis and the porter’s five forces. The US airline has placed itself in a
strategic position and has made strategic choices to counter the threats and maintain its
profitability. The US airline industry has benefited from the strategic choices of airline such as
Alaska and Delta. The Alaska airline customer service has been a relevant strategic choice for
the US airline because it has led an increase in demand.

1
Introduction
The US airline industry is one the best airline industries in the world. The Airline has had
challenges such as flight delays, long TSA lines, cancellation of flights, and law enforcement on
the industry which complicated the journey of the airline in achieving its goals. However, since
its inception, the united airlines has been growing tremendously making US industry the largest
in the world. However, the US airline industry has experienced extreme competition from other
airline industries globally which has reduced its profitability.
Context
Historical overview
The airline has had a history of complicated deregulation and regulation just like any
other airline. The regulation on the United States airline was the airmail act of 1925. This act
covered the federal regulation of air traffic, airmen, aircraft, and navigational facilities. The
introduction of air transport in the United States has been of great importance to the country and
the entire world. The US airline industry comprises of carriers such as delta airlines, JetBlue,
American Airlines, and southwest airlines. The airline has made it easier for family reunions,
business tours, and vacations across the US and around the world. The United States airline
industry started operating in 1914. After the airline started operating, government support
increased worldwide while financial stability of the industry decreased because of the 1930s
depression.
Theory
Strategic position of the US airline industry
Strategic choice of a firm is the process through which decisions are made to choose a
specific option from several alternatives. The strategic choice is important in planning (David,
2013, pp.68). Another importance of strategic choice is that it helps an organization to identify
its strengths and weaknesses. In addition, it helps companies to be able to allocate its resources
well.