Resource availability and new entry in the US airline industry

Martin Dresner and Robert Windle

Journal of Air Transport Management, 2001, vol. 7, issue 4, 231-239

Abstract: This paper examines the impact of resource availability, namely labor and flight equipment availability, on entry into the US airline industry. The general thesis is that when labor and/or flight equipment is in scarce supply, the cost of starting and operating a new airline, or the cost of expanding onto new routes, is high. The paper found a positive correlation between new aircraft delivery and new entry onto routes by majors but a negative correlation between new aircraft delivery and entry onto routes by non-majors. The paper also found a negative correlation between major carrier salary levels and entry by majors but a positive correlation between major carrier salary levels and entry by non-majors.

Keywords: Airlines; Entry; Resource availability (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969699701000114
Full text for ScienceDirect subscribers only

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:eee:jaitra:v:7:y:2001:i:4:p:231-239

DOI: 10.1016/S0969-6997(01)00011-4

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().