Synopsis of the Case
Since the deregulation of 1978, the airline industry weathered wave after wave of major challenges; recessions, labor issues, terrorist attacks and fluctuating crude oil prices. Thirty-five years later, legacy carriers, those carriers in business prior to 1978 utilizing a hub and spoke business model (Grahm & Vowles, 2006, p. 105), face nimble low cost competitors unfettered by union contracts, pension plans, older fleets or an established hub and spoke business model (Grahm & Vowles, 2006, p. 106). To survive and drive an overall industry profit, the legacy carriers must re-evaluate and address the competitive factors of their …show more content…
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