Professor John Strong highlights airline industry consolidation as key factor in market challenges
Professor John Strong, the CSX Professor of Business Administration at William & Mary’s Raymond A. Mason School of Business, was recently quoted in a VTDigger article discussing Burlington International Airport's efforts to capture the growing demand for air travel. With the airport aiming to expand its services in response to increasing passenger interest, Strong offered valuable insights into the broader complexities of the U.S. airline industry.
As Burlington seeks to capitalize on the recovery in travel demand, Strong noted that the airline industry’s struggles are not solely a result of deregulation. Instead, he emphasized the significant impact of airline consolidation, particularly the series of major mergers that reshaped the industry in the early 2000s.
Strong, a recognized expert in airline industry economics, transport finance, and retail financial analysis, pointed to four landmark mergers that occurred between 2010 and 2013: Delta’s merger with Northwest Airlines in 2010, Southwest’s merger with AirTran in 2011, United’s merger with Continental Airlines in 2012, and American Airlines’ merger with US Airways in 2013. These consolidations reduced the number of major carriers in the U.S. from eight to just four, a shift that Strong argues had a more profound effect on fares and services than the deregulation of the market.
"You went from eight carriers to four. That consolidation had more effect on fares and services than the general deregulation of the market," Strong said in the article. "I think this is more a question not of deregulation, but a question of antitrust policy."
As the airline industry continues to evolve, Strong’s perspective stresses the importance of evaluating both consolidation and antitrust regulations when assessing the root causes of the current market dynamics. His research, which includes extensive work on the economics and safety issues of the airline sector, offers a critical lens for understanding the economic forces shaping the aviation landscape today.
Strong has written extensively on the airline industry, with a focus on economics, safety, and financial management. His scholarship also spans areas such as infrastructure finance in transport and the economic challenges faced by developing countries, making him a sought-after expert in understanding complex industry trends.
As Burlington International Airport navigates these challenges, Strong’s insights serve as a reminder of the broader economic forces that continue to influence both regional airports and the airline industry as a whole.
The original article published under the headline Burlington airport hopes to capture growing demand. But it’s up against a fickle airline market went live January 26, 2025 and was written by Corey McDonald, VTDigger's Northwest Vermont reporter.
