Bargaining Power of Suppliers. The buyers in the airline industry canât exert any significant control over the prices charged for airfare. The service provided is unique. The reason why they purchase tickets is either personal or business related. Bargaining power of Buyers Buyer power is moderate. Next we look at the bargaining power of the suppliers. First, there are single flyers. These inputs however are very much affected by the external environment over which the airline ⦠By rapidly innovating new products. How JetBlue Airways Corporation can tackle the Bargaining Power of Buyers By building a large base of customers. Bargaining Power of Buyers. The Buyers: Buyers here comprise of individuals (business as well as leisure travelers) and B2B buyers which comprise mainly of travel agents, travel companies, and charter companies. Each airline has a niche. One is that it is quite costly for customers to keep switching flights, whether for their own transport or cargo. When looking at the major inputs that airline companies need, we see that they are especially dependent on fuel and aircrafts. Example: Bargaining power of buyers in the AIRLINE INDUSTRY is high. There is a big investment in marketing and building customer loyalty too. The bargaining power of suppliers in the airline industry can be considered very high. Customers are able to check prices of different airline companies fast through the many online price comparisons websites such as Skyscanner and Expedia. The bargaining power of buyers comprises one of Porterâs five forces that determine the intensity of in an industry. Brand loyalty to existing airlines is also a reason that restricts new players. Porterâs five forces analysis. They can proceed through the specific airline or through the 2nd category of buyers: travel ⦠The power of an industryâs important buyer ⦠Overall the bargaining power of buyers has an extremely low threat in this industry. The others are barriers to entry, industry rivalry, the threat of substitutes and the bargaining power of suppliers.. How to assess the power of a buyer group. The bargaining power of buyers in the aerospace industry is another area which is affected by the presence of few large scale suppliers of aircrafts. Bargaining power of buyers . The power of suppliers in the airline industry is immense because of the fact that the three inputs that airlines have in terms of fuel, aircraft, and labor are all affected by the external environment. It will reduce the bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its sales and production process. Overall, the barriers are too high which keeps the threat from new layers minimized. Buyers in the airline industry refer to the people who board flights or transport their cargo by air. Bargaining Power of Buyer. The airline companies have few suppliers to choose from, however, their purchase decisions are made with a long term perspective. This category is particularly diverse. They have some influence on the prices, by opting for other airlines, charging lower airfare, however the demand for quality is a central feature for customers of Emirates ⦠Some airlines focus on cost, while others focus on having the best amenities, etc. This will be helpful in two ways. Bargaining power of buyers: The bargaining power of the buyers following ⦠Generally, buyers have very low bargaining power due to various reasons. The airline industry typically has a large number of buyers â the Indian Airline Industry ⦠Bargaining power of Buyers The airline industry is composed of 2 categories of buyers. Kelly Mann ECN 2020-84250 Competitive Forces Paper December 6, 2010 The Bargaining Power of Buyers in the Aerospace & Defense Industry The United States aerospace and defense industry is the largest of its type in the world.