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An empirical analysis of the determinants of network construction for Azul Airlines

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  • Oliveira, Bruno F.
  • Oliveira, Alessandro V.M.

Abstract

This paper describes an econometric model of the Brazilian domestic carrier Azul Airlines’ network construction. We employed a discrete-choice framework of airline route entry to examine the effects of the merger of another regional carrier, Trip Airlines, with Azul in 2012, especially on its entry decisions. The results suggest that post-merger, Azul has adopted a more idiosyncratic entry pattern, focusing on the regional flights segment to conquer many monopoly positions across the country, and strengthening its profitability without compromising its distinguished expansion pace in the industry.

Suggested Citation

  • Oliveira, Bruno F. & Oliveira, Alessandro V.M., 2022. "An empirical analysis of the determinants of network construction for Azul Airlines," Journal of Air Transport Management, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:jaitra:v:101:y:2022:i:c:s096969972200028x
    DOI: 10.1016/j.jairtraman.2022.102207
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    More about this item

    Keywords

    Airline; Air transport; Entry; Network; Merger;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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