This paper studies the optimal structure of supply in the air-transportation industry. The impact of price regulation on quality is taken into account. It is shown that, at the first-best optimum, the generalised transportation price (ticket price + time costs) exactly equals the average costs....

Following a brief review of the U.S. domestic airline industry under regulation (1938-1978), we study the changes that have occurred in pricing, service, and competition in the 28 years since deregulation. We then examine some of the major public policy issues facing the industry: (a) the...

The safety of the commercial airline industry has attracted considerable attention in the wake of airline deregulation, amid growing concerns that the historical superiority of U.S. jet carriers' safety records may have been linked to economic regulation of the industry by the Civil Aeronautics...

This paper examines the application of price-cap regulation to the UK airport industry, with particular reference to the expansion of London-Stansted. This expansion is relevant to the debate concerning investment incentives inherent in the RPI-X approach and whether the UK style of regulation...

Airlines frequently use code-share agreements allowing them to market seats on flights operated by partner airlines. Current studies argue that with complementary networks this generates positive welfare effects because fares for interline passengers who rely on the service of multiple airlines...

The international market for air transport of passengers was subject to strong restrictions between the end of World War Two and the beginning of liberalization, started from 1978 in the United States. The regulations set up by the International Air Transport Association (IATA) included controls...

This paper provides an overview of how the major airports are regulated in Europe. In order to eliminate the potential of airports to exercise market power and protect the public interest, it has become increasingly necessary to set a common regulatory framework. We intend to discuss the need of...

The paper discusses markets and regulations in MENA air and maritime transport.

We explore how an incumbent airline firm structures its route network under the threat of entry caused by deregulation. We show that entry induces the incumbent firm to strategically alter its flight operating network from a fully connected network (FC) to a hub-and-spoke network (HS). While...