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How do Delta, United, American Airlines, and Southwest all operate within the same market and not have fare wars constantly leading to bankruptcy? If you were c
by jartelt 7y ago
How do Delta, United, American Airlines, and Southwest all operate within the same market and not have fare wars constantly leading to bankruptcy? If you were correct, it seems like it would be impossible for several airlines to operate within the US. Yet, several airlines somehow manage to set prices that allow them to operate. I'm not saying Lyft and Uber will ultimately be successful (I don't know), but it wouldn't unheard of for multiple players to operate in the ride sharing market and not constantly have a fare war.
- return1 7y agosounds like what taxicab companies have been doing for centuries.the question is what growth prospects uber has in a market that is already saturated and fighting for the bottom line, as there is little barrier for a new entrant.
- unreal37 7y agoNot sure if you're joking, but the airlines have a long long history of bankruptcy... Even American Airlines declared bankruptcy in 2011 and emerged from it in 2013... Delta in 2005. United in 2002. [0] http://airlines.org/dataset/u-s-bankruptcies-and-services-cessations/ http://airlines.org/dataset/u-s-bankruptcies-and-services-ce...
- jartelt 7y agoYet AA, Delta, and United are each still operating and each valued at over $10B today. The point is that the airline industry has several players operating and competing and has not totally imploded and fares have not skyrocketed. Many are predicting Uber and lyft will either raise fares a ton or the companies will totally fail and be worthless. I'm saying there is a middle ground where they compete without killing each other.