How incresed number of domestic airlines have effected the development of the aviation industry?

Question

How incresed number of domestic airlines have effected the development of the aviation industry?

Answer 1

I don't think an increased number of domestic airlines has affected the development.  It is just that the new airlines that start up are low-cost airlines.  Therefore they are offering many times really cheap tickets which the major airlines have a hard time matching because the major/legacy carriers have a higher cost structure.  With the increased number of domestic airlines, it has evolved the way aviation travel is.  By that I mean air travel is more affordable to everyone.  Before airline deregulation in 1978, airline ticket prices were very expensive and the airlines had little competition.  Going to the airport in the 1950s was a big event and people got dressed up even if they were just going to pick up someone.

So with an increase in the number of domestic airlines, you will see that it will be survival of the fittest.  As new airlines enter the market, the weaker ones will exit or be bought out.  Also with an increased number of domestic airlines, it has caused ticket prices to fall.  I know people complain about the high cost of an airplane ticket but when you have a lot of low-cost domestic airlines competing, the legacy carriers get squeezed because they have a higher cost structure.  Because of that, they make less profit and they cannot replace their aircraft as quickly.  That is why the airlines that have the oldest age fleet are the legacy carriers.

Answer 2

Not 100% sure what your question is.. but I will take a stab at it.

The number of airlines has hurt the avaition industry, but helped passengers. Since more budget airlines have popped up, the major ones have seen their revenues go down. But this have foreced fare wars which always help the passengers.