Airline Supply Chain Is Too Large

Airlines Need New Planes, but the Supply Chain Has Other Ideas

There’s no shortage of reasons to be worried about the state of the airline industry. In the past two years, the price of fuel has been climbing, the rate of investment in the industry has dropped, and we’ve seen how poorly airlines are compensated for their losses.

But perhaps the most striking reason why U.S. airlines need to rethink the way they operate is the lack of alternatives to what we currently have. Despite several years of low-cost carriers entering the industry–including United and Delta–it still relies on air travel as its top revenue source. And because it does, you can expect it to continue to do so if U.S. airlines are forced to change their business model.

What this has led to is a situation that is difficult to fix, even if one assumes they do exist. While there are many factors to consider when assessing the future of the industry, one of the biggest is the need to find a more competitive model to keep U.S. airlines financially healthy–and in the process, keep their customers flying.

The problem is that the airline supply chain will only offer solutions in one of two places. One option is to find a way to keep the prices of tickets affordable, which could potentially lead to new entrants into the market. The other option is to find a cost reduction to increase the supply of planes–an approach that would require both a massive change in the supply chain and massive subsidies by the federal government.

Airline Supply Chain Is Too Large

There’s a good reason the airline supply chain is too large to be a viable model for airline disruption: It doesn’t exist. Take, for example, the current situation of Southwest Airlines: The company took over American’s operations in 1996, and now its only real competitor is a Canadian budget airline called Air Transat. (If you’re already familiar with American Airlines, that’s what it’s called at the end of the United flight, but let’s just call it American for now). This is a situation that the airline supply chain itself would suggest is unsustainable, but the problem comes when you consider that any other airline that may be entering the market would have to do so within a

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