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Airline alliances—who benefits?

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  • Morrish, S.C
  • Hamilton, R.T

Abstract

The advent of global airline alliances in the 1980s gave rise to concerns that increased monopoly power of major carriers would lead to large and sustained producer surpluses. These global alliances now enjoy dominant market shares in the industry. This review examines some 15 years of alliance experience and finds no conclusive evidence that alliance membership has yielded monopoly profits to the airlines. Improvements in terms of load factors and general productivity levels have, for the most part, been accompanied by fare reductions of similar magnitude, resulting in only modest gains to the carriers.

Suggested Citation

  • Morrish, S.C & Hamilton, R.T, 2002. "Airline alliances—who benefits?," Journal of Air Transport Management, Elsevier, vol. 8(6), pages 401-407.
    • Handle: RePEc:eee:jaitra:v:8:y:2002:i:6:p:401-407
    DOI: 10.1016/S0969-6997(02)00041-8
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    References listed on IDEAS

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    Cited by:

    1. Nigel Dennis, 2005. "The development of long-haul air services from regional and secondary airports in Europe," ERSA conference papers ersa05p316, European Regional Science Association.

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