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

Analyzing Financial Statements of Actual U.S. Companies - Term Paper ExampleFinally, the analysis will be relied on to determine in which company to $ 20,000.Back in the seventies, the airline industry in the U.S was highly regulated. During the period, the government implemented strict policies to new entrants. The regulations put by the government delineate very high standards, which attracted more 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, lessen quality of the airline work and decline 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 their competitive standards, and one of the in fo rce(p) 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 affordable (Airline Deregulation, Revisited par. 1-7).Currently, roughly airline companies have a new plan that most analysts refer to as anti-competitive strategies. The consolidation strategy that has seen many airline companies merge is not support by various authorities such as the Department of Transport. Companies following companies have structured 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 capital of South Carolina and Antitrust Divisions civil enforcement program legally challenged the consolidation strategy on the grounds that free competition and the quality level of services would be compromised (Airline Deregulation, Revisited par.