This paper presents a model of second-degree price discrimination and inter-group effects to describe the full-service pricing behaviour in the passenger aviation market. Consumer heterogeneity is assumed on both a horizontal and a vertical dimension, while various distinct market structures,...

This paper investigates the response of full service carriers (FSCs) to theentry of low-cost carriers (LCCs). We develop a model of airlinecompetition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British...

<title>Abstract</title> This paper aims to provide new measures of airline network configuration with a view to analyse effectively the complexity of modern carriers’ network design. It studies network configurations in the airline sector by taking into account both spatial and temporal dimensions. The...

The paper identifies conditions under which asymmetric equilibria may exist when carriers compete in designing their network configurations in a game-theoretical framework. Two carriers are assumed here, which are allowed to play three different strategies: point-to-point (PP), hub-and-spoke...

This paper investigates the response of full service carriers (FSCs) to the entry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some of which include low-cost players. Using data on published airfares of Lufthansa, British...

This paper presents a model of second-degree price discrimination and inter-group effects to describe the full-service pricing behaviour in the passenger aviation market. Consumer heterogeneity is assumed on both a horizontal and a vertical dimension, while various distinct market structures,...

The paper analyses the reorganisation that European carriers have implemented after September 11 in the transatlantic flights. We model carriers’ conduct as a mixture of short- and long-term goals, where the weights depend on firm-specific variables (adjustment costs, financial situation)...