Due to the long stretched shape of the country and sparse population many regions in Norway are dependent on air travel that involves chained trips with two or more legs. Northern Norway and the west coast are particularly dependent on such networks. In these areas a number of short take-off and...

The paper examines the case of Alitalia, Italy’s former flag carrier, as a case of a state-managed failure. The history of the airline is characterized by a continuous decline in its competitive position since the progressive liberalization of the European aviation market. The root cause...

We analyze the influence of increases in airport capacity and the entry of low-cost carriers on airline competition. We use parametric and non-parametric techniques to analyze a sample of Spanish routes. We find that capacity increases in large airports produce more competitive airline conduct...

Changes in competition in selected US domestic airline markets since deregulation of the airline industry are examined in this paper, focusing on both the top 100 markets and the largest markets out of dominated cities. Our analysis of carrier concentration in origin-destination markets since...

This paper looks at the inherent flaws that have emerged in the business models that have been pursued by the major network airlines. The business model adopted by the low-cost carriers is more robust and has gradually undermined the ability of the network carriers to practice the price...

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...

This paper provides a methodological framework to analyze the decisions of airlines and travelers taking into account the contractual agreement between airports and airlines. This contract sets the fees that carriers pay for landing, the rental rate for the terminal space that they occupy, as...

We posit and empirically test the hypothesis that airlines are able to charge a fare premium in markets that originate in their domestic country relative to similar markets that originate in foreign countries. To this end, we focus on intercontinental one-stop air travel trips for which the...

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...

This paper examines the formation of alliances in the contemporary airline industry, comparing this with developments in business collaboration in industry generally. It identifies the main forces driving airlines into alliances, before considering the strategies that airlines are adopting in...