Ologopoly in Airline Sector

Introduction

We all know that one of the trendy day tenets of business success is 'the Customer is always right' and therefore the associated imperative have to be compelled to provide excellent customer service

In simple form ,a free market is self regulating and acts to balance corporate desires with consumer desires, making a good level of win-win to all or any concerned. But there are a number of things where a free market cannot act freely. These things vary from limited provider of resources through to restrictions on competitors getting into the market, through to several other factors. When the free market model starts to fail, then the balance between firm and consumer benefits starts to fail in addition, and generally corporations begin to get a disproportionate return on their activities.

One measure of if a market is open and free and a model of 'Perfect Competition’ is the degree of oligopolistic dominance of suppliers in the market.  By most measures, airlines are oligopolies and the current trend to approving airline ‘alliances’ is making this a near universal scenario.

In most industries, a key ingredient within the success of every business is its relationship with its customers.The a lot of loyal and content their customers, the more successful the corporate.Why are the airlines therefore completely different to the rest of the world? Do customer relations extremely really not build any difference at all to the airlines and their profitability? Is there something we are able to do to change this?Let's take the theory and see if it applies to the airline trade as it presently is within the US and across the Atlantic.

Economic theory

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ligopoly defined

How is it that we're being told, whenever airlines link together to make another airline alliance,that this reduction in competition is nice for us when economic theory typically says the opposite facet

An oligopoly is defined as "a market structure in which only a few sellers...