This paper shows that "strict" financial break-even for airports may not be socially desirable. To maximize social welfare, airports should be allowed to take losses or make profits at different times while achieving break-even only in the long run. In particular, with economies growing over...

In recent years airports have been under growing pressure to become financially self-sufficient and to pursue profit maximization in their non-aeronautical or concession operations. In this paper we examine the optimal pricing in a model where concession and aeronautical operations of an airport...

This paper analyzes capacity requirement by alternative network structures. Based on a simple model, it is concluded that the capacity required under a hub-and-spoke network would be more than twice as large as the capacity required under a fully connected network. In recent years, China has...

This paper studies the capacity and pricing choice of two congestible airports in a multi-airport metropolitan region, under transition from a pure public, centralized airport system to partial or full privatization. We develop analytical models to investigate three privatization scenarios:...

This paper uses an event study methodology to investigate how investors have reacted to new information (events) affecting merger/foreign alliance possibilities in the Canadian airline industry for the 1992-1993 period. We find that news regarding the merger/foreign alliance possibilities had a...

This paper examines the effect of multimodal integration on the rivalry between two transport chains - a forwarder-airline alliance and an integrator - under the economies of traffic density. An improvement in multimodal integration by a forwarder-airline alliance would increase the alliance's...