IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v5y1999i3p153-160.html
   My bibliography  Save this article

KLM and Northwest: a survey of the impact of a passenger alliance on cargo service characteristics

Author

Listed:
  • Morrell, P.S
  • Pilon, R.V

Abstract

This paper identifies and quantifies the impact of a major passenger alliance, between KLM and Northwest Airlines, on the cargo service characteristics of one of the partners, KLM. The hypothesis that the KLM/Northwest Airlines passenger alliance had led to a decline in the quantity and quality of cargo service connections is rejected, even though the first years of the alliance clearly indicate deteriorated cargo layover times. The number of possible connections and the inbound and total routing belly-hold capacity increased during the time-span considered for the research. Also, the cargo layover times eventually declined after an initial increase. Different samples of routes connecting through Minneapolis, Detroit, New York, and Chicago (the latter being KLM Cargo's hub where interlining with United Airlines is feasible) all demonstrate a consistent positive impact. Partner connections eventually outperformed interlining.

Suggested Citation

  • Morrell, P.S & Pilon, R.V, 1999. "KLM and Northwest: a survey of the impact of a passenger alliance on cargo service characteristics," Journal of Air Transport Management, Elsevier, vol. 5(3), pages 153-160.
  • Handle: RePEc:eee:jaitra:v:5:y:1999:i:3:p:153-160
    DOI: 10.1016/S0969-6997(99)00009-5
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699799000095
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/S0969-6997(99)00009-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Lamm, R McFall, 1981. "Prices and Concentration in the Food Retailing Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 30(1), pages 67-78, September.
    3. Kim, E Han & Singal, Vijay, 1993. "Mergers and Market Power: Evidence from the Airline Industry," American Economic Review, American Economic Association, vol. 83(3), pages 549-569, June.
    4. Humphreys, Barry K, 1994. "The implications of international code sharing," Journal of Air Transport Management, Elsevier, vol. 1(4), pages 195-207.
    5. Youssef, Waleed & Hansen, Mark, 1994. "Consequences of strategic alliances between international airlines: The case of Swissair and SAS," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(5), pages 415-431, September.
    6. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    7. 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.
    8. Barton, David M & Sherman, Roger, 1984. "The Price and Profit Effects of Horizontal Merger: A Case Study," Journal of Industrial Economics, Wiley Blackwell, vol. 33(2), pages 165-177, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chao, Ching-Cheng & Kao, Ko-Ting, 2015. "Selection of strategic cargo alliance by airlines," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 29-36.
    2. Goh, Kevin & Uncles, Mark, 2003. "The benefits of airline global alliances: an empirical assessment of the perceptions of business travelers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(6), pages 479-497, July.
    3. Lori Houghtalen & Özlem Ergun & Joel Sokol, 2011. "Designing Mechanisms for the Management of Carrier Alliances," Transportation Science, INFORMS, vol. 45(4), pages 465-482, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Anming, 2005. "Competition Models of Strategic Alliances," Research in Transportation Economics, Elsevier, vol. 13(1), pages 75-100, January.
    2. Yan, Jia & Fu, Xiaowen & Oum, Tae Hoon & Wang, Kun, 2019. "Airline horizontal mergers and productivity: Empirical evidence from a quasi-natural experiment in China," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 358-376.
    3. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Yahua, 2020. "Evaluating the price effects of two airline mergers in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    4. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    5. Fabio Panetta & Fabiano Schivardi & Matthew Shum, 2009. "Do Mergers Improve Information? Evidence from the Loan Market," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(4), pages 673-709, June.
    6. John Simpson & Christopher Taylor, 2008. "Do Gasoline Mergers Affect Consumer Prices? The Marathon Ashland Petroleum and Ultramar Diamond Shamrock Transaction," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 135-152, February.
    7. Snellman, Heli, 2006. "Automated teller machine network market structure and cash usage," Bank of Finland Scientific Monographs, Bank of Finland, volume 0, number sm2006_038, July.
    8. Anming Zhang & Yimin Zhang & Joseph A. Clougherty, 2011. "Competition and Regulation in Air Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 35, Edward Elgar Publishing.
    9. Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2013. "Airline consolidation and the distribution of traffic between primary and secondary hubs," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 951-963.
    10. Orley C. Ashenfelter & Daniel Hosken & Matthew Weinberg, 2009. "Generating Evidence to Guide Merger Enforcement," Working Papers 1137, Princeton University, Department of Economics, Center for Economic Policy Studies..
    11. 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.
    12. Davis, David E., 2009. "Price and promotion effects of supermarket mergers," SDSU Working Papers in Progress 12009, South Dakota State University, Department of Economics, revised Jun 2010.
    13. Emilie Dargaud, 2013. "Horizontal mergers, efficiency gains and remedies," European Journal of Law and Economics, Springer, vol. 36(2), pages 349-372, October.
    14. Li, Michael Z.F., 2000. "Distinct features of lasting and non-lasting airline alliances," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 65-73.
    15. Minyoung Yea & Seokhyun Chung & Taesu Cheong & Daeki Kim, 2018. "The Sharing of Benefits from a Logistics Alliance Based on a Hub-Spoke Network: A Cooperative Game Theoretic Approach," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    16. Lars-Hendrik Röller & Johan Stennek & Frank Verboven, 2006. "Efficiency Gains from Mergers," Chapters, in: Fabienne IIzkovitz & Roderick Meiklejohn (ed.), European Merger Control, chapter 3, Edward Elgar Publishing.
    17. Janić, Milan, 1997. "Liberalisation of European aviation: analysis and modelling of the airline behaviour," Journal of Air Transport Management, Elsevier, vol. 3(4), pages 167-180.
    18. Hammoudeh, Mosab & Nain, Amrita & Qian, Yiming, 2022. "The role of divestitures in horizontal mergers11We thank Jon Garfinkel, Jayant Kale, Kai Li, Gordon Philips, Anand Vijh, Thomas Wollmann, David Ravenscraft and participants at the 2016 American Financ," Journal of Corporate Finance, Elsevier, vol. 72(C).
    19. Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
    20. Orley Ashenfelter & Daniel Hosken, 2008. "The Effect of Mergers on Consumer Prices: Evidence from Five Selected Case Studies," NBER Working Papers 13859, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:5:y:1999:i:3:p:153-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.