European airlines' structural excess capacity $($i$.$e$.,$ low load factors$)$ negatively affected the average profitability in the European airline industry between $2001$ and $2014.$ This is an example of how:

Question $5$Answer

a$.$

The rivalry among existing firms affects industry profitability.

b$.$

The threat of new entrants affects industry profitability.

c$.$

The threat of substitute products affects industry profitability.

d$.$

The bargaining power of buyers affects industry profitability.

e$.$

The bargaining power of suppliers affects industry profitability.