this out. At the same time, events such as the destruction of the World Trade Center have raised apprehension about flying itself, while outbreaks of SARS in China and Canada have raised apprehension about particular destinations. However, technological advances, including the ability to show broadcast television or have seats that convert to full beds, have made it possible for airlines--including British Airways, to attract new customers and customers from other airlines ("Virgin Goes," 2003).
Porter's Five Forces provide a way to analyze the competitive landscape. In the air transport industry, supplier power has increased in recent years as the number of airlines has declined as a result of mergers, acquisitions and bankruptcies. However, buyer power has also increased as the Internet has made it possible for consumers to research available fares and routes quickly and easily without having to involve travel agents and without relying on any single airline for information. The barriers to entry on a global level--such as a direct competitor to British Airways--are significant due to the large capital requirements of acquiring an aircraft fleet and the difficult regulatory requirements that must be overcome. However, it is less difficult--although still expensive and cumbersome--to start a local carrier which can then expand its operations. Both Southwest Airlines and JetBlue began in this manner and have become highly successful (Fernandez, 2003).
Threat of substitutes is generally not high--there are not many substitute methods for jet travel--although substitutes have evolved in unexpected ways. While business travelers, for example, are no longer willing to substitute train or ship travel for airlines, some travelers are choosing to re-examine traveling for other options. This is particular true of business travelers who are using the Internet and teleconferencing to conduct meetings that once would have required t...