Several airline consolidation events have recently been completed both in Europe and in the United States. The model we 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...

In a hub-and-spoke network, the total profit function of an airline is supermodular with respect to its entry decisions at different city-pairs. This source of complementarity implies that a hub-and-spoke network can be an effective strategy to deter entry of competitors. This paper presents a...

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. Focusing on the “network effects", this paper develops and estimates a structural model of the...

The objective of this study is to provide evidence on the accuracy of merger simulation methods, which have become common instruments to evaluate ex-ante the effects of complex transactions. In particular, I study the price effects of one of the most important mergers in the U.S. airline...

In this paper, we use detailed information of weather conditions, Eurocontrol regulations and strikes to examine the main drivers of flight delays in six Spanish airports in the period 2017–2018. We show that external shocks are an important driver of delays for low-cost and dominant airlines...

This paper examines forms of airport regulation and privatization, taking into account of behavior of public administration and both the aeronautical and non-aeronautical services. We find that with higher costs associated with public operations, a public airport cannot be identified as a...

We use a simple analytical framework to derive pricing rules for oligpolistic airlines at airports that are served by competitive airlines as well. The pricing rules show how the degree of internalization of marginal congestion costs depends on market structure. The analysis illustrates the...