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...

A recent trend in aviation markets is the emergence of airline alliances. One could argue that the emergence of alliances is a continuation of the process of concentration and consolidation that was first characterized by the emergence of hub-and-spoke networks. The international aviation market...

The demand for air transport is largely determined by the spending capacity of customers. This paper aims to offer more insight into the determinants of price elasticities in the aviation sector. It seeks to identify both common and contrasting factors that influence the price elasticities, on...

In 2008 the ‘joint open aviation area’ between the US and EU will become reality. It is expected that competition will increase. The reaction of the airlines depends on the possibility to make profits in ‘new’ markets (markets that can now be entered). This, in turn,...

Low-cost carriers like easyJet, Buzz and Ryanair use catching slogans highlighting their sometimes very low fares to attract passengers. This paper analyses pricing behaviour in the London–Paris market where low-cost carriers and conventional carriers are active. The central question is...

This paper summarizes and extends the empirical findings of previous research by the author, which analyzed the effect of airline cooperation on the level of interline fares paid by international passengers. The analysis focuses on three measures of cooperation: alliance membership, codesharing,...