Quarterly panel data covering the largest 10,000 city-pairs in the domestic US from 1998 are used to investigate airlines market entry and exit decisions. Several models are estimated looking at changes in the number of carriers serving in a market. The influence of a number of markets...

In the post-World War II period, India nationalised its airline industry but it began to relax these controls in 1986. It has found no shortage of new entrants willing to add capacity into a system where supply-side constraints are regarded as the main impediments to a boom in airline travel....