Kawamori, Tomohiko; Lin, Ming Hsin - In: Economics of Transportation 2 (2013) 2, pp. 63-71
A hub carrier operates one hub linking multiple non-hub cities. It merges with a low cost carrier whose nonstop service competes with its one-stop service. The merged airline's profit is maximized by withdrawing the competing one-stop (nonstop) service when the hub carrier's operating cost and...