This paper addresses the problem of hub airport privatization, similar to the studies by Matsumura and Matsushima (2012 …) and Mantin (2012). However, differentiating from their papers, this paper introduces a domestic airline network. That is … at least one country has a small domestic airline network, the same result as that by Matsumura and Matsushima (2012) and …

We analyze the effect of privatization on the performance of British Airways by examining the privatization's impact on … Airways' privatization, implying expectation of a more competitive British Airways. Closer rivals of British Airways … significantly upon privatization. The results suggest that a change from government to private ownership improves economic …