Examine the Rivarly among existing competitors and the threat of Essay

date the Rivarly among existing competitors and the threat of substitute product in downcast cost flight path industry in Europe - Essay ExampleTherefore, there should be checks and balances put in place to control the combat among industries of low cost air lane in Europe (Airlines Industry Profile Europe, 2014, p. 4). This paper examines the rivalry among the competitors and the exploit this has on the profit potential. Moreover, it also unravels the threats of substitute of a product in low cost airline industry in Europe.As asserted by Cameron and Quinn (2011, p. 2), airline industry has changed largely due to deregulating act of airline that occurred in America. These effects of deregulation act that occurred in America extended to the whole world. The results of liberalization of airline industry resulted in the emergence of low cost airline. The act helped in abandoning the stance quo of restrictive pricing model that inhibited the growth of airline industry. Deregula tion act helped in removing the render control over airline routes and it promoted the attract of other airlines into the market (Airlines Industry Profile Europe, 2014, p. 9). Therefore, the act assailable the airline industry to competitive market forces that excite resulted to rivalry among different firms.Nonetheless, the passengers fares decreased in a number of market because of the growth of competition in the industry. The competition came because of new entrance of airline of low cost into the market (Airlines Industry Profile United Kingdom 2014, p.8). The strategy of low cost airline hold been so appealing especially to traditional airlines and this led to Southwest airline being the pioneer to introduce low fares airline for short routes. In Europe, deregulation act helped in emergence of the first European low cost airline after which, rivalry competition have dominated the market due to high number of low cost airlines.Low cost airlines have lower cost compared t o the cost of their competitors. The