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The Performance of European Full Service Airlines after Liberalisation: An Econometric Analysis

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  • Lara Gitto
  • Fulvio Minervini

Abstract

Deregulation in the airline industry has forced full service airlines to change their strategies in order to respond to increasing challenges. In this paper, an econometric analysis of the possible determinants of economic performance of full service airlines after liberalisation has been carried out. A fixed effects model was used and the performance of ten European full service airlines has been analysed over a period of 11 years. Variables considered in this analysis were the number and type of aircraft in the fleet, the number and type of destinations, investments, number of employees and alliances. The analysis suggests that full service airlines should adjust fleet composition and re-organise operations on their routes in order to react to the increasingly competitive environment.

Suggested Citation

  • Lara Gitto & Fulvio Minervini, 2007. "The Performance of European Full Service Airlines after Liberalisation: An Econometric Analysis," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 105-122, January-F.
    • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:105-122
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    References listed on IDEAS

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    Cited by:

    1. Bergamini, Elisabetta & Gitto, Simone & Mancuso, Paolo, 2010. "Restructuring the Alitalia business model," Journal of Air Transport Management, Elsevier, vol. 16(1), pages 16-19.
    2. Zuidberg, Joost, 2014. "Identifying airline cost economies: An econometric analysis of the factors affecting aircraft operating costs," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 86-95.

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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