Executive Summary This paper looks at the current, ongoing challenges facing the airline industry in the United States. It focuses on major, legacy airlines and the newer, discount entrants, which are referred to as low-cost carriers (LCCs). SWOT analyses and Competitive Matrix Profiles (CPM) help show the strengths, status, and market position of prominent U.S. Airlines: Delta, Southwest, and JetBlue. The paper reviews the airlines’ financial state, with emphasis given to 2009-2010. Airlines’ strategic plans are covered, discussing potential ways to increase revenues. The paper concludes with current trends affecting all airlines and then makes recommendations for the firms to establish or maintain cost leadership.
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