Question

Explain in no less than 10 sentences how can an airline corporate be a monopolist.

Answer 1

Airlines offer the passengers to travel around the world, whereas railways and travelling by overseas could minimize the travelling options which made Airlines more accessible. Also the business happened to bloom from 2010 due to many US airline mergers. As the airline industries have been getting consolidated, they've created their position strong enough to turn down the other transportation industry demand leading to the monopolistic competition. Airlines charges the customers higher in tickets, extra baggage, late fees etc since it's in monopolistic demand and also customers do not have any option but to rely on speedy transportation compared to the other services. Also business travelling has became more expensive than the vacation travelling. Majority of airline companies acting as suppliers of airline transportation merged has lead to create a bigger control over the entire airline industry, charging the customers high as the demand for travelling around on business and tourism has increased nowadays. Although, airline safety has been a subject matter here, the ease in booking and travelling has made the customers choose airlines over other alternatives. Airlines are highly concentrated industry although it has it's weaknesses as not able to perform upto the expected levels and it was never easy for the airline employees. Innovation and deregulation by Government is taking place although nowadays there has been an argument saying that the airlines are changing it's ways from being oligopoly from a monopoly.