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An urge to merge?

Author

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  • de Wit, Jaap G

Abstract

This article examines recent market behaviour of EU airlines. After a short descrip- tion of the EU liberalization process the article continues to analyze the network related cost characteristics of airlines in the deregulated U.S. domestic market. Network economies have been a decisive factor in market concentration and compe- tition. The article concludes that during the first years after the liberalization neither fares nor frequencies reflect an intensified competition in the internal market. Different developments in network restructuring of EU airlines are described, indicating the first steps towards market concentration.

Suggested Citation

  • de Wit, Jaap G, 1995. "An urge to merge?," Journal of Air Transport Management, Elsevier, vol. 2(3), pages 173-180.
    • Handle: RePEc:eee:jaitra:v:2:y:1995:i:3:p:173-180
    DOI: 10.1016/0969-6997(96)00003-8
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    References listed on IDEAS

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    1. Kahn, Alfred E, 1988. "Surprises of Airline Deregulation," American Economic Review, American Economic Association, vol. 78(2), pages 316-322, May.
    2. Bailey, Elizabeth E, 1981. "Contestability and the Design of Regulatory and Antitrust Policy," American Economic Review, American Economic Association, vol. 71(2), pages 178-183, May.
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    Cited by:

    1. Tretheway, Michael W. & Markhvida, Kate, 2014. "The aviation value chain: Economic returns and policy issues," Journal of Air Transport Management, Elsevier, vol. 41(C), pages 3-16.
    2. Dennis, Nigel, 2000. "Scheduling issues and network strategies for international airline alliances," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 75-85.
    3. Barrett, Sean D, 1997. "The implications of the Ireland-UK airline deregulation for an EU internal market," Journal of Air Transport Management, Elsevier, vol. 3(2), pages 67-73.
    4. Goel, A., 2003. "Strategic Alliances in the Global Airline Industry," IIMA Working Papers WP2003-01-02, Indian Institute of Management Ahmedabad, Research and Publication Department.

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