Analyzing Financial Statements of Actual U.S. Companies Term Paper

Analyzing Financial Statements of Actual U.S. Companies - Term Paper representativeFinally, the analysis will be relied on to determine in which company to $ 20,000.Back in the seventies, the airline business business persistence in the U.S was highly regulated. During the period, the establishment implemented strict policies to new entrants. The regulations put by the government set very high standards, which attracted more(prenominal) entry fee. As a result, the entry into the industry became more expensive. Potential entrants withdrew their entry plans. The consequences of the strict regulations were low competition, high prices, reduced quality of the airline services and decrease in sales volume. Since the U.S. Government lifted the regulations, the entry of new players has been on the rise. Competition in the industry has increase leading to a rise in services standards. The quality of airline services increased as the competition grew tight. Companies had to improve thei r competitive standards, and one of the effective competitive strategies is constant quality delivery. deregulation of the airline industry lead to the reduction of the fare prices, which made the airline services more inexpensive (Airline Deregulation, Revisited par. 1-7).Currently, most airline companies have a new plan that most analysts refer to as anti-competitive strategies. The desegregation strategy that has seen many airline companies merge is not supported by various authorities much(prenominal) as the Department of Transport. Companies following companies have merged into one Air Trans merged with Southwest, the American airline merged with U.S Airways, United airline merged with Continental among other examples. The recent consolidation causes many fears as it could lead to monopoly. As a result, in 2013, the District of Columbia and Antitrust Divisions elegant enforcement program legally challenged the consolidation strategy on the grounds that free competition and the quality take of services would be compromised (Airline Deregulation, Revisited par.