Complementary versus semi-complementary airline partnerships
As low-cost airlines or carriers excluded from international markets by regulation may seek to expand internationally in an indirect way through code-sharing agreements, they can choose partner airlines from among domestic or international carriers. The former case results in a semi-complementary partnership, while in the latter a classic complementary alliance is formed. This paper compares welfare properties of the two types of partnerships under economies of traffic density. Semi-complementary partnerships yield higher total welfare (but not necessarily lower prices) when economies of traffic density are strong, demand is more price-sensitive, or where a carrier feeding domestic traffic to international routes is a lower cost one.
Year of publication: |
2007
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Authors: | Bilotkach, Volodymyr |
Published in: |
Transportation Research Part B: Methodological. - Elsevier, ISSN 0191-2615. - Vol. 41.2007, 4, p. 381-393
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Publisher: |
Elsevier |
Saved in:
Online Resource
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