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Elite Airways

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By Adelina Pohl. Type of airline. Published at Saturday, March 23rd, 2019 - 17:29:46 PM.

In December 1991 the collapse of Pan Am an airline often credited for shaping the international airline industry highlighted the financial complexities faced by major airline companies.

Those considering how best to guarantee security to the general flying public should reject the premise that airline security can be guaranteed by the screening of the entire flying population to identify potential terrorists and prevent them from boarding an airplane. This premise needs to be replaced with a new airline security concept and a set of assumptions that have greater probability of achieving the security goals with minimal inconvenience to the airlines and the flying public and stand up to reasonable cost benefit analysis.

The advent of advanced computerized reservations systems in the late 1970s most notably Sabre allowed airlines to easily perform cost-benefit analyses on different pricing structures leading to almost perfect price discrimination in some cases (that is filling each seat on an aircraft at the highest price that can be charged without driving the consumer elsewhere).

Although US airline deregulation was initially envisioned as leading to an increased number of carriers whose divergent service concepts market segments fleets and route structures would have produced new competition stimulated traffic and lowered fares it ultimately came full cycle and only resulted in virtual monopoly. Three distinct stages occurred during its evolution.


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