IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v7y2001i1p57-62.html
   My bibliography  Save this article

Global airline alliances: international regulatory issues

Author

Listed:
  • Oum, Tae Hoon
  • Yu, Chunyan
  • Zhang, Anming

Abstract

The air transport industry has remained one of the most regulated and restrictive industries in international trade. Domestic deregulation and liberalization have been progressing at an uneven pace across countries, and liberalization of the international markets has yet to overcome numerous obstacles. Air carriers, on the other hand, need to build up an extensive global network to realize economies of scope and density and to meet consumer demands. To accomplish this, they need to have foreign partners. However, ownership restrictions do not allow for cross-country mergers or takeovers. As a result, alliances have become, and will remain in the near future, the primary means for expanding and strengthening airline global service networks. Alliances have provided a way for carriers to mitigate the limitations of bilateral agreements, ownership restrictions, and licensing and control regulations. In effect, both airlines and governments consider international alliances to be the second best solution to achieve free trade in world aviation. This paper discusses regulatory issues related to international airline alliances. Section 1 provides an overview of the current regulations surrounding alliance frameworks, and Section 2 contains a synthesis of economic analysis of regulatory concerns for international airline alliances. Section 3 discusses international coordination in regulations of airline alliances, and Section 4 provides a summary and conclusion.

Suggested Citation

  • Oum, Tae Hoon & Yu, Chunyan & Zhang, Anming, 2001. "Global airline alliances: international regulatory issues," Journal of Air Transport Management, Elsevier, vol. 7(1), pages 57-62.
    • Handle: RePEc:eee:jaitra:v:7:y:2001:i:1:p:57-62
    DOI: 10.1016/S0969-6997(00)00034-X
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969970000034X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/S0969-6997(00)00034-X?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. Bernard M. Hoekman & Petros C. Mavroidis, 1994. "Competition, Competition Policy and the GATT," The World Economy, Wiley Blackwell, vol. 17(2), pages 121-150, March.
    2. Tony Warren & Christopher Findlay, 1998. "Competition Policy and International Trade in Air Transport and Telecommunications Services," The World Economy, Wiley Blackwell, vol. 21(4), pages 445-456, June.
    3. Bernard Hoekman, 1997. "Competition Policy and the Global Trading System," The World Economy, Wiley Blackwell, vol. 20(4), pages 383-406, July.
    4. Hoekman, Bernard, 1997. "Competition policy and the global trading system : a developing country perspective," Policy Research Working Paper Series 1735, The World Bank.
    5. 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.
    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. Brueckner, Jan K. & Proost, Stef, 2010. "Carve-outs under airline antitrust immunity," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 657-668, November.
    2. Duval, David Timothy, 2008. "Regulation, competition and the politics of air access across the Pacific," Journal of Air Transport Management, Elsevier, vol. 14(5), pages 237-242.
    3. Wen, Yuh-Horng & Hsu, Chaug-Ing, 2006. "Interactive multiobjective programming in airline network design for international airline code-share alliance," European Journal of Operational Research, Elsevier, vol. 174(1), pages 404-426, October.
    4. Beria, Paolo & Scholz, Aaron B., 2010. "Strategies and pitfalls in the infrastructure development of airports: A comparison of Milan Malpensa and Berlin Brandenburg International airports," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 65-73.
    5. Fan, Terence & Vigeant-Langlois, Laurence & Geissler, Christine & Bosler, Björn & Wilmking, Jan, 2001. "Evolution of global airline strategic alliance and consolidation in the twenty-first century," Journal of Air Transport Management, Elsevier, vol. 7(6), pages 349-360.
    6. Min, Hokey & Joo, Seong-Jong, 2016. "A comparative performance analysis of airline strategic alliances using data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 99-110.
    7. Zhang, Yahua & Sampaio, Breno & Fu, Xiaowen & Huang, Zhibin, 2018. "Pricing dynamics between airline groups with dual-brand services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 46-59.
    8. Shaw, Shih-Lung & Lu, Feng & Chen, Jie & Zhou, Chenghu, 2009. "China’s airline consolidation and its effects on domestic airline networks and competition," Journal of Transport Geography, Elsevier, vol. 17(4), pages 293-305.
    9. Grauberger, Waldemar & Kimms, Alf, 2016. "Revenue management under horizontal and vertical competition within airline alliances," Omega, Elsevier, vol. 59(PB), pages 228-237.
    10. Castiglioni, Marco & Gallego, à ngeles & Galán, José Luis, 2018. "The virtualization of the airline industry: A strategic process," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 134-145.
    11. Never, Jan & Suau-Sanchez, Pere, 2020. "Challenging the interline and codeshare legacy: Drivers and barriers for airline adoption of airport facilitated inter-airline network connectivity schemes," Research in Transportation Economics, Elsevier, vol. 79(C).
    12. Tascón, Diana C. & Díaz Olariaga, Oscar, 2021. "Air traffic forecast and its impact on runway capacity. A System Dynamics approach," Journal of Air Transport Management, Elsevier, vol. 90(C).
    13. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.
    14. Luis Miguel Bolívar & José Luis Roldán & Ignacio Castro-Abancéns & Cristóbal Casanueva, 2022. "Speed of International Expansion: The Mediating Role of Network Resources Mobilisation," Management International Review, Springer, vol. 62(4), pages 541-568, August.
    15. Burghouwt, Guillaume & Hakfoort, Jacco, 2001. "The evolution of the European aviation network, 1990–1998," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 311-318.

    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. Wolfgang Kerber & Oliver Budzinski, "undated". "Towards a Differentiated Analysis of Competition of Competition Laws," German Working Papers in Law and Economics 2004-1-1090, Berkeley Electronic Press.
    2. Klodt, Henning, 2000. "Conflicts and conflict resolution in international antitrust," Kiel Working Papers 979, Kiel Institute for the World Economy (IfW Kiel).
    3. Mohamed El Hedi Lahouel, 2000. "Competition Laws in MENA: An Assessment of the Status Quo and the Relevance of a WTO Agreement," Working Papers 2011, Economic Research Forum, revised 04 2000.
    4. Gnutzmann-Mkrtchyan, Arevik & Hoffstadt, Martin, 2020. "Use and Abuse of Antidumping by Global Cartels," Hannover Economic Papers (HEP) dp-677, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    5. Çaglar Özden, 2005. "International Dimensions of Competition Policies. European Responses to American Mergers," Revue économique, Presses de Sciences-Po, vol. 56(6), pages 1413-1442.
    6. Duijm Bernhard, 1999. "Die Unabhängigkeit von Kartellbehörden," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 50(1), pages 323-344, January.
    7. Khalid Sekkat, 2009. "Does competition improve productivity in developing countries?," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 12(2), pages 145-162.
    8. Paolo Guerrieri & Isabella Falautano, 2000. "A Birds-Eye View of the Agenda: The Developing Countries and the Millennium Round," Working Papers 2010, Economic Research Forum, revised 04 Jun 2000.
    9. Johannes W. Fedderke & Witness Simbanegavi, 2008. "Price Elasticities and Pricing Power in Emerging Markets: The Case of Petrochemicals Derived Plastics in South Africa," Working Papers 078, Economic Research Southern Africa.
    10. Hoekman, Bernard & Holmes, Peter, 1999. "Competition policy, developing countries, and the World Trade Organization," Policy Research Working Paper Series 2211, The World Bank.
    11. Simon J. Evenett & Bernard M. Hoekman, 2006. "Economic Development and Multilateral Trade Cooperation," World Bank Publications - Books, The World Bank Group, number 7412, December.
    12. Bertrand, Olivier & Ivaldi, Marc, 2006. "European Competition Policy in International Markets," IDEI Working Papers 419, Institut d'Économie Industrielle (IDEI), Toulouse.
    13. 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.
    14. Avalos, Marcos & Schatán, Claudia, 2004. "Condiciones de competencia en el contexto internacional: Cemento, azúcar y fertilizantes en Centroamérica," EGAP Working Papers 2004-08, Tecnológico de Monterrey, Campus Ciudad de México.
    15. Rafael Moner Colonques & Ricardo Flores Fillol, 2006. "Strategic Effects Of Airline Alliances," Working Papers. Serie AD 2006-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    16. W. Whalen, 2007. "A panel data analysis of code-sharing, antitrust immunity, and open skies treaties in international aviation markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(1), pages 39-61, February.
    17. Bamberger, Gustavo E & Carlton, Dennis W & Neumann, Lynette R, 2004. "An Empirical Investigation of the Competitive Effects of Domestic Airline Alliances," Journal of Law and Economics, University of Chicago Press, vol. 47(1), pages 195-222, April.
    18. Gayle Philip G. & Thomas Tyson, 2015. "Product Quality Effects of International Airline Alliances, Antitrust Immunity, and Domestic Mergers," Review of Network Economics, De Gruyter, vol. 14(1), pages 45-74, March.
    19. Brueckner, Jan K. & Proost, Stef, 2010. "Carve-outs under airline antitrust immunity," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 657-668, November.
    20. Quartieri, Federico, 2017. "Are vessel sharing agreements pro-competitive?," Economics of Transportation, Elsevier, vol. 11, pages 33-48.

    More about this item

    Statistics

    Access and download statistics

    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:7:y:2001:i:1:p:57-62. 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.