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The Optimality of Competitive Air Transport Markets: A Review of Aspects of the ICAP Report

Christopher C. Findlay

The Economic Record, 1982, vol. 58, issue 2, 141-151

Abstract: The results of a model of optimal air fares and flight frequency, which can also be used to generate market results, are applied to market failure arguments, contained in the recent ICAP Report, for regulation of international airlines. The arguments of the report are classified under headings of capacity and utilization, ‘on‐demand’ service and fare structure. It is argued contrary to the ICAP Report that the competitive result can he optimal in conditions likely to apply on international routes.

Date: 1982
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https://doi.org/10.1111/j.1475-4932.1982.tb00360.x

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