The additional capacity of low cost airlines in the airline industry has held consumer costs down resulting in less revenue and lower returns for competing airlines. Bargaining Power of Supplier: Moderate Factors relating to the bargaining power of suppliers include the threat of forward integration and the concentration of suppliers in the industry...
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Suppliers are concentrated within the airline industry. Boeing and Airbus supply most commercial fixed-wing air carriers. Supplier concentration makes it difficult for competitors to exercise leverage over the supplier and obtain lower prices or play one supplier against another. The threat of forward integration is low...
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Southwest Airlines Other airlines are copying Southwest's strategy in order to enter the low-fare, short-haul market. Delta Airlines has built a low-fare regional carrier service and has acquired a minority stake in three regional airlines...	2 / 387
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