Flawed Industry Structure for Airlines

The airline industry has a fundamental flaw that encourages companies to cut prices too far, which cause some competitors to go bankrupt. When companies exit from bankruptcy, they have much less debt and liabilities, which allows them to cut prices much further than before. This round of price cuts forces all other companies to go bankrupt. This cycle continues until eventually all airlines go bankrupt as some point in their operating history. … "Flawed Industry Structure for Airlines" has a significant impact, so an analyst should put more weight into it. "Flawed Industry Structure for Airlines" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value.