The impact of liberalization on European airline strategies and operations

Rigas Doganis

Journal of Air Transport Management, 1994, vol. 1, issue 1, 15-25

Abstract: The paper summarizes the economic arguments in favour of regulation. It goes on to analyse the operational and strategic developments among European airlines in response to regulatory liberalization. Four kinds of response are identified: a search for size and market dominance; efforts to reduce operating costs; the use of new market- ing tools; and the introduction of new operating practices. Despite expectations no new entrant airlines have emerged to challenge the established European majors. On the contrary, the European airline industry is increasingly concentrated. It does not manifest the economic characteristics of a competitive industry and is becoming increasingly oligopolistic. The key issue is whether, after a period of market instability, the remaining European airlines will collude or compete on intra-European services.

Keywords: airlines; deregulation; strategy; oligopoly (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:1:y:1994:i:1:p:15-25

DOI: 10.1016/0969-6997(94)90027-2

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