In this paper a vertical differentiation model is built in order to analyse the effects of subsidies to secondary airports, or of lower prices set by them, on the competition between LCC’s and FSC’s. The Ryanair/ Charleroi agreement is used as an example and as a basis for the model. The...

This paper analyses the duration of flight delays at Spanish airports. To do so, several hazard models are adopted to take into account the delays observed. The results show that the most important factors are certain airport characteristics and contextual characteristics. The policy...

We show that monopoly is better than competition in term of social welfare for low frequency routes. Competition affects both flight schedules and airfares. Flight schedules get un-even interval by competition and this leads to large scheduling delay cost (SDC). The increment of SDC is large...

Much of the literature on the airline industry identifies a potential entrant to a market based on whether the relevant carrier has presence in at least one of the endpoint airports of the market without actually operating between the endpoints. Furthermore, a potential entrant is often defined...

When there is significant overlap in potential partner airlines׳ route networks, policymakers have expressed concern that an alliance between such airlines may facilitate collusion on price and/or service levels in the partners׳ overlapping markets. The contribution of our paper is to put...

Between 1995 and 2004, I find that airline prices fell more than 20% adjusted for inflation. I also show that premia at hub airports declined and that there is now substantially less disparity between the cheaper and more expensive airports than there was a decade ago. Still, I find that prices...

A central question in competitive dynamics is whether a competitive response can be predicted. This study links various characteristics of actions with the total number and the time lag of competitors' responses. The hypothesized relationships were tested with a sample of competitive moves among...

We develop a test for vertical collusion between airports and airlines in the case of two different scenarios. In the first scenario there is one airport and one airline; this intends to depict the case of airports that do not compete with any other one. In the second, we consider two competing...

This paper investigates the effects of the airlines-within-airlines strategy adopted by Qantas airline group, which simultaneously runs a full-service airline (Qantas Airways) and a low-cost carrier (Jetstar Airways). Our empirical investigation of airline pricing and route entry patterns in the...

This paper examines the price effects of the merger between Delta Airlines and Northwest Airlines. Empirical analysis finds that, other things equal, the fares for airport-pairs where Delta and Northwest competed with each other prior to the merger did not increase by much following the merger....