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As demand increases, airline carriers often increase flight frequencies to meet the larger flow of passengers in their networks, which reduces passengers' schedule delays and attracts more demand. Motivated by this, I study a structural model of the U.S. airline industry accounting for possible...
Persistent link: https://www.econbiz.de/10010929125
Abstract In airline networks, a link creates profits for its carrier in conjunction with the carrier's other links. In other words, a link has “network” value. One prominent mechanism behind this network value is a hubbing effect: adding one single link to a hub creates many connecting...
Persistent link: https://www.econbiz.de/10012904705
airlines, the merger is less detrimental to the frequency, possibly because the merger removes serial marginalization in the … decrease the frequency more, possibly due to a larger effect on the market structure. When the merging airlines control all the … flights, mergers have almost no impact on the frequency. The second set-up uses the market structure before the merger. When …
Persistent link: https://www.econbiz.de/10011715887
develop considers two airlines operating hub-and-spoke networks, using different hubs to connect the same spoke airports. We … assume the airlines to be vertically differentiated, which allows us to distinguish between primary and secondary hubs. We … following its merger with Northwest. We find evidence consistent with an increase in the importance of Delta's primary hubs at …
Persistent link: https://www.econbiz.de/10010730153
to deter entry of competitors. This paper presents a dynamic game of airlines network competition that incorporates this …
Persistent link: https://www.econbiz.de/10008578151
airport congestion can occur. Airlines prefer hub-and-spoke configurations, even if this implies higher congestion costs …. Airlines may be inefficiently biased towards hub-and-spoke networks. …
Persistent link: https://www.econbiz.de/10011208466
airlines, the merger is less detrimental to the frequency, possibly because the merger removes serial marginalization in the … decrease the frequency more, possibly due to a larger effect on the market structure. When the merging airlines control all the … flights, mergers have almost no impact on the frequency. The second set-up uses the market structure before the merger. When …
Persistent link: https://www.econbiz.de/10011819472
delay occurrence. Hence, larger airlines seem to offer a higher quality in terms of delays. We also find that an origin …
Persistent link: https://www.econbiz.de/10011819492
We investigate whether legacy U.S. airlines communicated via earnings calls to coordinate with other legacy airlines in … among airlines about their capacity choices. Estimates from our preferred specification show that when all legacy airlines … reduction materializes only when airlines communicate concurrently, and that it cannot be explained by other possibilities …
Persistent link: https://www.econbiz.de/10012207880
Persistent link: https://www.econbiz.de/10013260038