Given the increasing volatility in the economic performance of airlines, partially reflecting the dynamics of demand for air transport and the fixed costs associated with the industry, all stakeholders need to consider appropriate strategies for better managing the risks. Many risks were...

This paper presents the results of the first known study of the impacts of airline yield management (YM) under competitive market conditions, taking into account the YM capabilities of competing airlines. This study makes use of a simulation model that includes both passenger choice behavior and...

This paper examines the economics of discrimination in airline fares and raises the question of when it may be desirable and when undesirable. One of the main points in this debate concerns the use of discriminatory pricing as a strategic weapon in competition against other airlines....

We explore the interaction between full service carriers (FSCs) and low cost carriers (LCCs) in a market for air travel, of which flying is merely one component in a bundle of services. The paper employs a locational approach to product differentiation to provide insights concerning the degree...

This study explores the relation between airline market structure and schedule differentiation. Using a location theory framework applied to product differentiation over the time scale, the analysis relates the level of competition, and the presence of low-cost carriers in non-stop US markets to...

International aviation is responsible for between 2.5% and 3% of anthropogenic carbon dioxide (CO2) emissions that are partly held responsible for climate change. International aviation is not subject to any regulatory framework for the limitation of these emissions. From an economic point of...

<Para ID="Par1">We investigate the competitive effects of exchanges or sales of airport landing slots, using a model where airlines allocate their slot endowments across routes consistent with a Cournot–Nash equilibrium. With symmetric endowments, an increase in the number of slot-holding airlines raises...</para>

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...

Much of the literature on the airline industry identifies a potential entrant to a market based on whether the relevant carrier has presence in at least one of the endpoint airports of the market without actually operating between the endpoints. Furthermore, a potential entrant is often defined...

“The quiet life hypothesis” (QLH) by Hicks (1935) argues that, due to management’s subjective cost of reaching optimal profits, firms use their market power to allow inefficient allocation of resources. Increasing competitive pressure is therefore likely to force management to work harder...