Recent developments in the airline industry are notable in three respects. A rising tide of concentration, which is accelerating and expanding through a proliferation of

alliances

among major carriers at home and abroad; a recurring resort to predatory pricing by the majors which continues to subvert competition by low-cost independents; and an intensification of the tacitly collusive, noncompetitive pricing behavior expected to emerge in such a highly concentrated structural milieu.
Airlines - alliances - monopoly - predatory pricing