d flights accordingly (Transportation and Distribution p.1). It is the first of its kind and should prove advantageous.In the process of teaming up is Northwest and American airlines, the number 2 and 4 carriers in the industry. If it happens, American would acquire Northwest and as a result, American would complete the alignment of all four carriers in the oneworld alliance that it and British Air anchor (Carey p.1) There are still talks going on in relation to the possible merger and no one really knows for sure what the outcome will be.Implications for the airline industryOur group recommends that those firms presently in the airline industry aim to provide high quality services at the lowest possible price. In order to successfully reach all aspects of the consumer market, firms need to fully understand their customers needs. Providing flight packages to satisfy both the business traveler and the leisure traveler market segments will greatly help each firm. We also feel that consumers desire quick and effortless travel from purchasing tickets to the actual travel time on the plane. As a result, firms should aim to provide the quickest and most simple way to travel.Attractiveness of the IndustryThe airline industry is not very attractive to a firm looking to enter the market. There are many reasons for this. First, there are many established carriers that have worked extremely hard to be successful and are not tolerant of new threats that may make them less so and will attack new firms to remain at the top. Second, it would take a great deal of capital to start a new airline firm. And third, entry as well as exit costs are extremely high and to risk putting so much money into something only to risk having it not succeed is a consideration that should not be taken lightly.Another important issue is that the airline industry seems to be very niche oriented. Airlines enter the market most often in areas that had been previousl...
