Optimal Air Service Agreements

Harry Clarke ()

Economic Analysis and Policy (EAP), 1998, vol. 28, issue 2, pages 169-186

Abstract: Air Service Agreements are government-to-government negotiated bilateral agreements that determine a nation's permitted passenger carrying capacity between origin and endpoint nodes on particular international air routes. This study determines how social surplus-maximising agreements can be constructed under various demand and bargaining assumptions. The analysis is exposited in terms of the Australia-Japan air route although it is quite general. The role of marketing and downstream inter-industry effects are examined. Problems of computing optimal agreements are discussed.

JEL-codes: L93 (search for similar items in EconPapers)
Date: 1998

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