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Business Case: The U.S. Airline Industry Low profitability can be attributed to the industry...

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Accounting

Business Case: The U.S. Airline Industry

Low profitability can be attributed to the industry 's cost structure in relation to high proportions of fixed costs , excess capacity , and price sensitivity of consumers . Intense rivalry between established competitors has had the biggest impact on depressing industry profitability . Barriers to exit intensify competition by preventing orderly exit of companies and capacity .

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