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

This paper presents a model of second-degree price discrimination and inter-group effects to describe the full-service pricing behavior 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 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...

Air transport networks have exhibited a trend towards complex dynamics in recent years. Using Lufthansa’s networks as an example, this paper aims to illustrate the relevance of various network indicators - such as connectivity and concentration - for the empirical analysis of airline network...