Bargaining Power of Customers: Individual flyers buy plane tickets either through the specific

airline or through travel agencies. The customers need a lot of important information such as
safety aspects of flying and the services provided. Overall, the bargaining power of buyers has a
moderate low threat in this industry.

Bargaining Power of Suppliers: The major suppliers are the airplane manufacturers. Airline
companies only differentiate with amenities. However, some manufacturers are trying to make
their planes more eco friendly. It is not easy to switch up suppliers. Most airlines have long term
contracts with their suppliers. The bargaining power of suppliers is a high threat because there
are few suppliers in the airline industry.

Threat of New Entrants: There are low extremely low switching costs because the industry
requires a large amount of capital. Existing firms can and will use their high capital to retaliate
against newer firms. The time and money spent to open an airline company is enough to
prevent new entrants.

Threat of Substitutes: There are substitutes in the airline industry. There are other forms of
transportation such as a car, train, or boat. However, some of these can be more costly than a
plain ticket and would require more time.

Rivalry Among Existing Players: There is an intense rivalry. The industry is stagnant and it is
hard to leave the industry. The profit in the industry can be high and can be highly profitable.