Airline Competition

“President Obama promised to fight corporate concentration,” says public interest journalist Justin Elliott. “Eight years later, the airline industry is dominated by just four companies.” It’s true that what were seven major airlines in 2008 have merged into four today. The Antiplanner isn’t sure, however, that this is a bad thing.

According to Wikipedia, in 2008, those seven major airlines (American, Continental, Delta, Northwest, Southwest, U.S. Air, and United) had 88.0 percent of the domestic air market. As of fiscal 2016, that’s dropped to 84.5 percent.

Meanwhile, Alaska has increased its market share by 65 percent and JetBlue has increased its share by 43 percent. Hawaiian’s share has increased by 15 percent. Two major new airlines have appeared, Allegiant and Spirit, giving travelers more choices particularly since they have different pricing models.

Continue reading