This paper provides theory and evidence on airline bag fees, offering insights into a real-world case of product unbundling. The theory predicts that an airlineś fares should fall when it introduces a bag fee, but that the full trip price (the bag fee plus the new fare) could either rise or...

Using annual data on individual US airlines over the 1995-2015 period, this paper presents regression results relating an airline's total fuel usage to seven variables: the available ton miles of capacity (passengers plus freight and mail) provided by the airline; the average seat capacity of its...

This paper explores the effects of a European airline merger followed by a consolidation of two competing international alliances. The exercise has been inspired by the Air France-KLM merger, which is expected to spur consolidation of the Northwest-KLM and SkyTeam alliances into a single...

We investigate whether legacy U.S. airlines communicated via earnings calls to coordinate with other legacy airlines in offering fewer seats on competitive routes. To this end, we first use text analytics to build a novel dataset on communication among airlines about their capacity choices....

We show that the main claim in Dennis, Gerardi, and Schenone (JF forthcoming) (DGS), namely "that the documented positive correlation between common ownership and ticket prices stems from the market share component of the common ownership measure, and not the ownership and control components,"...