airline market structure
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The airline market structure:
The airline market structure is in a continuous process of changing. In the past the airline market has been dominated by national "flag carriers" and was a state-owned and state-sponsored instrument of economic. Nowadays the European airline market is becoming a free market structure. Private owned companies are arising in the market structure. And former governmental owned airlines are transferring into private owned companies. This process is accelerating because of three main factors
-aggressive ticket pricing strategies
-a fast growth of route expansion
-a process of mergers and takeovers
In the past the national "flag carriers" as KLM, British Airways, Lufthansa, Air France were monopolistic in their home country's and were subsidized if necessary. In the recent years the privatization has caused an oligopolic structure in which different companies compete with each other.
In the beginning the national "flag carriers" were operating mainly with the purpose to ensure the transportation of business travelers. Later on when the demand for touristic purpose was growing daughter companies were founded to serve the demand. These daughter companies were the first to build up the charter industry...