The paper analyses the reorganisation that European carriers have implemented after September 11 in the transatlantic flights. We model carriers’ conduct as a mixture of short- and long-term goals, where the weights depend on firm-specific variables (adjustment costs, financial situation)...

Published fares London–Amsterdam are used to examine the pricing practices of low-cost and legacy carriers when operating in a large and crowded market. We investigate two strategies of market segmentation involving the time before departure the ticket has been bought, inter-temporal...

We collect half-yearly data on nonstop flight frequencies offered by carriers on routes originating from Italian regions to European countries in the period 1998–2010. We find that, as the share of flights belonging to global alliances increases, the number of flights offered by airlines...

In this paper we simulate carriers' capacity allocation practices in order to investigate the role of fences and forecasting for maintaining high load factor levels and returns in oligopolistic airline markets. We analyse the case where firms apply a well-established revenue management...

Airlines network choices are analysed to describe the co-existence of alternative business models: the full service model based on the hub-and-spoke (HS) system and the low cost model based on point-to-point (PP) system. The analysis is carried on both theoretically and empirically. In the...

We analyze a variant of the standard Dixit-Stiglitz (AER, 1977) model, adding transport costs and assuming that, in addition to price, a firm can choose the size of the market area and the quality of the product. We also modify the standard cost function, making variable costs and fixed costs...

This paper presents a model of second-degree price discrimination and inter-group effects to describe the full-service pricing behaviour 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 theentry of low-cost carriers (LCCs). We develop a model of airlinecompetition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British...