Does vertical integration affect firm performance? Evidence from the airline industry
Silke Forbes () and
RAND Journal of Economics, 2010, vol. 41, issue 4, pages 765-790
We investigate the effects of vertical integration on operational performance. Large U.S. airlines use regional partners to operate some of their flights. Regionals may be owned or governed through contracts. We estimate whether an airline's use of an owned, rather than independent, regional at an airport affects delays and cancellations on the airline's own flights out of that airport. We find that integrated airlines perform systematically better than nonintegrated airlines at the same airport on the same day. Furthermore, the performance advantage increases on days with adverse weather and when airports are more congested. These findings suggest that, in this setting, vertical integration may facilitate real-time adaptation decisions. Copyright (c) 2010, RAND..
References: Add references at CitEc
Citations View citations in EconPapers (25) Track citations by RSS feed
Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1756-2171.2010.00120.x link to full text (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:bla:randje:v:41:y:2010:i:4:p:765-790
Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0741-6261
Access Statistics for this article
RAND Journal of Economics is currently edited by James Hosek
More articles in RAND Journal of Economics from RAND Corporation Contact information at EDIRC.
Series data maintained by Wiley-Blackwell Digital Licensing ().