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Post-crash airline pricing: A case study of Alaska Airlines Flight 261

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  • Zotova, Irina

Abstract

This paper examines the impact of the crash of Alaska Airlines Flight 261 on the domestic fares of the crash carrier, using a difference-in-difference approach. The results show that the crash reduced fares of Alaska Airlines relative to those of its competitors only in the months right after the crash, indicating that the financial ramifications are not persistent.

Suggested Citation

  • Zotova, Irina, 2017. "Post-crash airline pricing: A case study of Alaska Airlines Flight 261," Economics of Transportation, Elsevier, vol. 10(C), pages 18-22.
    • Handle: RePEc:eee:ecotra:v:10:y:2017:i:c:p:18-22
    DOI: 10.1016/j.ecotra.2017.05.002
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    References listed on IDEAS

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    1. Nethercutt, Leonard L. & Pruitt, Stephen W., 1997. "Touched by tragedy: capital market lessons from the crash of ValuJet Flight 592," Economics Letters, Elsevier, vol. 56(3), pages 351-358, November.
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    3. Bosch, Jean-Claude & Eckard, E Woodrow & Singal, Vijay, 1998. "The Competitive Impact of Air Crashes: Stock Market Evidence," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 503-519, October.
    4. Borenstein, Severin & Zimmerman, Martin B, 1988. "Market Incentives for Safe Commercial Airline Operation," American Economic Review, American Economic Association, vol. 78(5), pages 913-935, December.
    5. Jay Squalli & Mohsen Saad, 2006. "Accidents airline safety perceptions and consumer demand," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 30(3), pages 297-305, September.
    6. Nancy L. Rose, 1992. "Fear of Flying? Economic Analysis of Airline Safety," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 75-94, Spring.
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    Cited by:

    1. Babić, Danica & Begović, Boris & Levajković, Tijana, 2023. "Probabilistic model for the impact of fear of flying on airline network structures," Journal of Air Transport Management, Elsevier, vol. 109(C).
    2. Button, Kenneth & Porta, Flavio & Scotti, Davide, 2020. "The role of strategic airline alliances in Africa," MPRA Paper 108265, University Library of Munich, Germany.

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