Scheduled Domestic Air Transportation in the US

Taking Off

Airlines are once again looking to the skies after the downturn in consumer confidence. A medium concentration implies enough room for new entrants servicing niche markets. However, in a maturing industry the majors might merge being in an environment that is relatively volatile, fiercely competitive and with a government under increasing pressure to allow foreign ownership.

This industry comprises establishments primarily engaged in providing domestic air transportation of passengers and/or cargo over regular routes and on regular schedules. Establishments in this industry operate flights even if partially loaded. Establishments primarily engaged in providing scheduled domestic air transportation of mail on a contract basis are included in this industry. Domestic airline consists of network, low-cost and regional carriers. Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Low-cost carriers are those that the industry generally recognizes as operating under a low-cost business model. Regional carriers provide service from small cities, using primarily regional jets to support the network carriers' hub and spoke systems.