This paper investigates the response of full service carriers (FSCs) to theentry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British...

We study the link between air accessibility (measured by non-stop flights offer) and the manufacturing export of the Italian regions in Europe using a panel of 12,000 half-yearly observations ranging from 1998 to 2010. The analysis shows that the supply of non-stop flights provided by...