AFJROTC Commercial and General Aviation Take Off Practice Exam

What percentage of the market do the top four airlines currently control?

1. 50 percent

2. 60 percent

3. 70 percent

4. 80 percent

The correct answer is: 70 percent

The correct answer indicates that the top four airlines control 70 percent of the market. This is significant as it highlights the concentration of market power among a few carriers in the airline industry. High market concentration can influence pricing, services offered, and overall competition in the aviation sector. The statistic reflects trends in the airline industry where mergers and acquisitions have led to fewer airlines dominating the market share, as larger airlines absorb smaller ones or form partnerships for various operational efficiencies. This market concentration may lead to less competitive pricing and fewer choices for consumers, which is important for those studying business economics and aviation management. Understanding market share is crucial in analyzing how the airline industry operates and the challenges it faces in terms of competition and regulation. Factors such as government regulations, fuel prices, and changes in consumer travel behavior can also have a profound impact on market shares and the competitive landscape.