U.S. airlines have lost nearly $60 billion (2009 dollars) in domestic markets since deregulation, most of it in the … last decade. More than 30 years after domestic airline markets were deregulated, the dismal financial record is a puzzle … that challenges the economics of deregulation. I examine some of the most common explanations among industry participants …

Following a brief review of the U.S. domestic airline industry under regulation (1938-1978), we study the changes that … have occurred in pricing, service, and competition in the 28 years since deregulation. We then examine some of the major … public policy issues facing the industry: (a) the sustainability of competition and volatility of airline profits, (b …

In this paper, we investigate empirically the effect of two recent domestic airline alliances. We find that both … alliances benefited consumers - average fares fell and total traffic increased after the creation of the alliances on those city … pairs affected by the alliances. We also find that these effects are found both on city pairs where the alliance created one …

Airline transport generates a growing share of global greenhouse gas emissions but as of late 2016, this sector has not … faced U.S. fuel economy or emissions regulation. At any point in time, airlines own and lease a set of durable vehicles and … have invested in human and physical capital and an inventory of parts to maintain these vehicles. Each airline chooses …

empirical work. We provide reduced-form evidence that our model can explain why incumbent airlines cut prices when Southwest …

We estimate a model of service choice and price competition in airline markets, allowing for the carriers that provide …

. The turmoil in the U.S. airline industry has triggered much of the public policy discussion, as some observers have argued … that airlines in financial distress, particularly those operating under Chapter 11 bankruptcy protection, reduce prices to … the point of harming themselves and their competitors. This study investigates the pricing strategies of bankrupt airlines …

recognizing that competing airlines may increase service in response to a reduction in flights by a bankrupt airline. We do not …The airline industry's current financial crisis has raised concerns over the ramifications of airline bankruptcies for … healthy airlines are inclined to reduce flights. Moreover, from a consumer and policy perspective, the real concern is total …

variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on …This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such … a route averages thirty-six percent of the airline's average ticket price on the route. The pattern of price dispersion …

A number of recent papers have studied the relationship between price and market structure in the deregulated airline … the industry. The particular entry events that we focus on are those involving People Express Airline in 1984 and 1985. To …