This paper develops a model of price competition between two international airline alliances, with consumers' preferences vertically differentiated by the number of stops. Alliances benefit the interline passengers. Alliances with antitrust immunity do not benefit interline passengers more than...

Scheduling coordination is considered both a reason for and a consequence of airline consolidation. The authors formally model this dimension of airline partnerships, with complementary alliance where stop-over delays affect passengers' utility. They compare partnership where carriers are only...