Resource availability and new entry in the US airline industry

This paper examines the impact of resource availability, namely labor and f light equipment availability, on entry into the US airline industry. The ge neral thesis is that when labor and/or flight equipment is in scarce supply , the cost of starting and operating a new airline, or the cost of expandin g onto new routes, is high. The paper found a positive correlation between new aircraft delivery and new entry onto routes by majors but a negative co rrelation between new aircraft delivery and entry onto routes by non-majors . The paper also found a negative correlation between major carrier salary levels and entry by majors but a positive correlation between major carrier salary levels and entry by non-majors. (C) 2001 Elsevier Science Ltd. All rights reserved.