The airline industry is a profitable industry. The firms in this industry create barriers to entry through patents and regulations in order to reduce the threat of new entrants. It also minimizes the threat of substitutes while keeping rivalry to a minimum. The airline industry can be best categorized as a(n)_________.

Question

Quizplus · Accepted Answer

The airline industry is considered attractive because firms create barriers to entry, minimize the threat of substitutes, and keep rivalry low, all of which contribute to higher profitability and less competition.

The Airline Industry Is a Profitable Industry