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Airline mergers in Europe – An overview on the market definition of the EU commission

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  • Németh, Adél
  • Niemeier, Hans-Martin

Abstract

This paper compares the decisions of the European Commission on airline merger cases. The authors provide an overview of the merger decisions between 1996 and 2009 and analyze the definitions of the relevant market applied in each case. First, it considers the relevant market definition develop from the origin and destination approach, and second, the role of economics in the European Commission's airline merger decisions. The paper shows that the Commission has broadened the market definition by demand and supply substitutes only in the case of leisure traffic. Quantitative methods have not been used extensively which reflects a skeptical attitude towards economics based approaches in merger policy.

Suggested Citation

  • Németh, Adél & Niemeier, Hans-Martin, 2012. "Airline mergers in Europe – An overview on the market definition of the EU commission," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 45-52.
    • Handle: RePEc:eee:jaitra:v:22:y:2012:i:c:p:45-52
    DOI: 10.1016/j.jairtraman.2012.01.008
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    References listed on IDEAS

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    1. Brueckner, Jan K. & Pels, Eric, 2005. "European airline mergers, alliance consolidation, and consumer welfare," Journal of Air Transport Management, Elsevier, vol. 11(1), pages 27-41.
    2. Park, Jong-Hun, 1997. "The effects of airline alliances on markets and economic welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(3), pages 181-195, September.
    3. Joseph A. Clougherty & Anming Zhang, 2009. "Domestic rivalry and export performance: theory and evidence from international airline markets," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(2), pages 440-468, May.
    4. Brueckner, Jan K. & Spiller, Pablo T., 1991. "Competition and mergers in airline networks," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 323-342, September.
    5. P. Larouche, 2000. "Relevant market definition in network industries: Air transport and telecommunications," Competition and Regulation in Network Industries, Intersentia, vol. 1(4), pages 407-446, September.
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    Cited by:

    1. Chow, Clement Kong Wing & Tsui, Wai Hong Kan, 2017. "Organizational learning, operating costs and airline consolidation policy in the Chinese airline industry," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 108-118.
    2. Lenartowicz, M. & Mason, K. & Foster, A., 2013. "Mergers and acquisitions in the EU low cost carrier market. A Product and Organisation Architecture (POA) approach to identify potential merger partners," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 3-11.
    3. Pavlović, Dejan & Babić, Danica, 2018. "Recent trends in assessment of proposed consolidations in EU airline industry – From discretion to arbitrariness," Transport Policy, Elsevier, vol. 69(C), pages 65-77.
    4. Vladimír Hajko & Jaroslav Bil, 2013. "The Relevant Markets for Meat Production and Processing in the Czech Republic: Analysis of the Price Movements," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 7(3), pages 178-197, November.

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