The purpose of this article is to analyse the relation of technical efficiency to stock market prices in the US airlines industry. Technical efficiency is an indicator, dedicated to productivity analysis, taking into account the industry structure. It enables the quantification of gains related...

The recent merger between US Airways and American Airlines was approved by federal and state antitrust authorities, after the merging parties agreed to divest slots and gates at certain “constrained” airports to low cost carriers. By analyzing the stock-market returns of rival airlines, we...