Arab Passengers’ Airlines Framework and Performance: Jordan Case

Nesreen Barakat ()
Additional contact information
Nesreen Barakat: To-Excel Consulting Associates

No 727, Working Papers from Economic Research Forum

Abstract: The past two decades have witnessed vivid changes in the air transport services sector. These changes started in the developed countries, having a drastic effect on the global air transport services sector. This study performs an ex-post analysis; investigates the impact of the current passengers’ airlines conduct (e.g. agreements, alliances etc.) on the performance of the industry (number of passengers, airfares, and welfare) in Jordan. The estimation result- using OLS, 2SLS and GMM- concludes that air liberalization has no effect neither on the number of passengers nor the airfares. This insignificance can be interpreted by the fact Royal Jordanian has full dominance of the Jordanian air market, having the largest market share. However, judging on the desirability of openness is the impact on welfare. Based on the simulation results, increasing competition decreases the total revenue for the producers (as the average airfare has gone down) and increases the consumer surplus. The net effect of these changes on society welfare is positive; the consumer surplus increase outweighs the producers’ surplus decrease. This supports the notion of further liberalization in the air market in Jordan.

Pages: 36
Date: 2012, Revised 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2014/07/727.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2014/07/727.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2014/07/727.pdf)
http://bit.ly/2mNubhI (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:727

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().