IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v69y2018icp65-77.html
   My bibliography  Save this article

Recent trends in assessment of proposed consolidations in EU airline industry – From discretion to arbitrariness

Author

Listed:
  • Pavlović, Dejan
  • Babić, Danica

Abstract

EU airline deregulation in 2004 resulted in numerous merger proposals. The European Commission has a crucial role in deciding on mergers with a Community dimension. An overview of 21 merger proposals is followed by the assessment of the EC's attitude towards definition of relevant market and applied remedies. In this paper, we argue that the EC should apply EU competition law in a more consistent manner in order not to slip into arbitrariness.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:trapol:v:69:y:2018:i:c:p:65-77
    DOI: 10.1016/j.tranpol.2018.06.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X17300768
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2018.06.003?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. Starkie, David, 2012. "European airports and airlines: Evolving relationships and the regulatory implications," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 40-49.
    2. 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.
    3. János Kornai, 2014. "The soft budget constraint," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
    4. Schosser, Maximilian & Wittmer, Andreas, 2015. "Cost and revenue synergies in airline mergers – Examining geographical differences," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 142-153.
    5. Xiaowen Fu & Tae H. Oum, 2015. "Dominant Carrier Performance and International Liberalisation: The case of North East Asia," International Transport Forum Discussion Papers 2015/3, OECD Publishing.
    6. Malighetti, Paolo & Redondi, Renato & Salanti, Andrea, 2014. "Competitive vs. monopolistic routes: Are fares so different?," Research in Transportation Economics, Elsevier, vol. 45(C), pages 3-8.
    7. Kai Hüschelrath & Kathrin Müller, 2014. "Airline Networks, Mergers, and Consumer Welfare," Journal of Transport Economics and Policy, University of Bath, vol. 48(3), pages 385-407, September.
    8. Federico Ciliberto & Emily E. Cook & Jonathan W. Williams, 2019. "Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(1), pages 3-36, February.
    9. Steven, Adams B. & Yazdi, Amirhossein Alamdar & Dresner, Martin, 2016. "Mergers and service quality in the airline industry: A silver lining for air travelers?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 1-13.
    10. Bilotkach, Volodymyr & Lakew, Paulos Ashebir, 2014. "On sources of market power in the airline industry: Panel data evidence from the US airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 288-305.
    11. Burghouwt, Guillaume & de Wit, Jaap G., 2015. "In the wake of liberalisation: long-term developments in the EU air transport market," Transport Policy, Elsevier, vol. 43(C), pages 104-113.
    12. Teichert, Thorsten & Shehu, Edlira & von Wartburg, Iwan, 2008. "Customer segmentation revisited: The case of the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 227-242, January.
    13. 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.
    14. 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.
    15. Fu, Xiaowen & Oum, Tae Hoon & Chen, Ruowei & Lei, Zheng, 2015. "Dominant carrier performance and international liberalization – The case of Northeast Asia," Transport Policy, Elsevier, vol. 43(C), pages 61-75.
    16. 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.
    17. Wang, Kun & Fan, Xingli & Fu, Xiaowen & Zhou, Yiran, 2014. "Benchmarking the performance of Chinese airlines: An investigation of productivity, yield and cost competitiveness," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 3-14.
    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. Bai, Xue-jie & Zeng, Jin & Chiu, Yung-Ho, 2019. "Pre-evaluating efficiency gains from potential mergers and acquisitions based on the resampling DEA approach: Evidence from China's railway sector," Transport Policy, Elsevier, vol. 76(C), pages 46-56.

    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. 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.
    2. Vaze, Vikrant & Luo, Tian & Harder, Reed, 2017. "Impacts of airline mergers on passenger welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 130-154.
    3. Fu, Xiaowen & Jin, Huan & Liu, Shaoxuan & Oum, Tae H. & Yan, Jia, 2019. "Exploring network effects of point-to-point networks: An investigation of the spatial patterns of Southwest Airlines’ network," Transport Policy, Elsevier, vol. 76(C), pages 36-45.
    4. Liu, Shaoxuan & Oum, Tae Hoon, 2018. "Prospects for air policy liberalization in China as a Result of China-ASEAN Open Skies: Changing role of Chinese mega carriers in global scene and anticipated Low Cost Carrier competition," Transport Policy, Elsevier, vol. 72(C), pages 1-9.
    5. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    6. Le, Huubinh B. & Yimga, Jules O., 2023. "Codeshare restrictions as antitrust remedy," Transport Policy, Elsevier, vol. 138(C), pages 17-24.
    7. Zhang, Linfeng & Hou, Meng & Liu, Yichen & Wang, Kun & Yang, Hangjun, 2022. "Measuring Beijing's international air connectivity and suggestions for improvement post COVID-19," Transport Policy, Elsevier, vol. 116(C), pages 132-143.
    8. Weekx, Simon & Buyle, Sven, 2023. "The effect of airline dominance on airport performance: Empirical evidence from medium-sized European airports," Journal of Air Transport Management, Elsevier, vol. 107(C).
    9. Lykotrafiti, Antigoni, 2015. "Liberalisation of international civil aviation – charting the legal flightpath," Transport Policy, Elsevier, vol. 43(C), pages 85-95.
    10. Gong, Qiang & Wang, Kun & Fan, Xingli & Fu, Xiaowen & Xiao, Yi-bin, 2018. "International trade drivers and freight network analysis - The case of the Chinese air cargo sector," Journal of Transport Geography, Elsevier, vol. 71(C), pages 253-262.
    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. Gaurab Aryal & Federico Ciliberto & Benjamin T Leyden, 2022. "Coordinated Capacity Reductions and Public Communication in the Airline Industry," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3055-3084.
    13. Peng, I-Chin & Lu, Hua-An, 2022. "Coopetition effects among global airline alliances for selected Asian airports," Journal of Air Transport Management, Elsevier, vol. 101(C).
    14. Miyoshi, Chikage & Rubio Molina-Prados, Jesus, 2022. "Measuring the impact of long-haul low-cost carriers on lowering fares: A quasi-experimental design to assess the pre-COVID market," Transport Policy, Elsevier, vol. 128(C), pages 52-64.
    15. Clougherty, Joseph A., 2004. "Integrating Industrial Organization and International Business to Explain the Cross-National Domestic Airline Merger Phenomenon," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 19, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    16. Federico Ciliberto & Emily E. Cook & Jonathan W. Williams, 2019. "Network Structure and Consolidation in the U.S. Airline Industry, 1990–2015," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(1), pages 3-36, February.
    17. Oliveira, Bruno F. & Oliveira, Alessandro V.M., 2022. "An empirical analysis of the determinants of network construction for Azul Airlines," Journal of Air Transport Management, Elsevier, vol. 101(C).
    18. Matthias Firgo & Agnes Kügler, 2014. "Detecting Collusion in Spatially Differentiated Markets," Department of Economics Working Papers wuwp188, Vienna University of Economics and Business, Department of Economics.
    19. Fu, Xiaowen & Lei, Zheng & Wang, Kun & Yan, Jia, 2015. "Low cost carrier competition and route entry in an emerging but regulated aviation market – The case of China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 3-16.
    20. Shen, Ying, 2017. "Market competition and market price: Evidence from United/Continental airline merger," Economics of Transportation, Elsevier, vol. 10(C), pages 1-7.

    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:trapol:v:69:y:2018:i:c:p:65-77. 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.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    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.