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Airlines

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                Executive Summary

                Brief Excerpt from Industry Overview Chapter:

                The US airline industry includes about 500 companies with combined annual revenue of about $130
                billion. Major companies include American (owned by AMR), Delta, and United Continental, as well
                as the air operations of express delivery companies such as FedEx and UPS. The industry is highly
                concentrated: the 50 largest companies account for more than 80 percent of industry revenue.

                Companies in this industry offer scheduled air transportation of passengers and cargo.
                Nonscheduled transportation is covered in the Air Charter Services profile.

                COMPETITIVE LANDSCAPE

                Airlines depend highly on the health of the US economy, which affects air travel by business and
                consumer passengers. Because many costs are fixed, the profitability of individual companies is
                determined by efficient operations and on favorable fuel and labor costs. Small airlines can
                compete by serving local or regional routes.

                PRODUCTS, OPERATIONS & TECHNOLOGY

                Airlines operate scheduled flights that carry passengers, cargo, and mail. Major services include
                domestic passenger flights (about 30 percent of industry revenue); international passenger flights
                (25 percent); domestic cargo flights (20 percent); international cargo flights (10 percent); and
                domestic commuter passenger flights (10 percent). Other revenue comes from providing
                maintenance, servicing, training, and reservations. Some airlines also offer nonscheduled (charter)
                flights. Some airlines carry only cargo, using specially equipped planes. Most passenger airlines also
                provide cargo services.

                The basic operations of airlines include acquiring and maintaining airplanes and airport facilities,
                acquiring passengers and/or freight, managing staff, and operating flights. The flight equipment...



Contents:       Industry Overview
                Quarterly Industry Update
                Business Challenges
                Business Trends
                Industry Opportunities
                Call Preparation Questions
                Financial Information
                Industry Forecast
                Web Links and Acronyms



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