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Estimating the consumer welfare effects of de-hubbing: The case of Malév Hungarian Airlines

Volodymyr Bilotkach, Juergen Mueller and Adél Németh

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 66, issue C, 51-65

Abstract: We document and analyze events that followed bankruptcy of Malév Hungarian Airlines on February 3, 2012. Most of the new services post-bankruptcy came from low-cost point-to-point carriers. Flight frequency offered by such carriers is lower than what was offered by the network airline. Yet, fares charged by these airlines are presumably also lower. We suggest a methodological approach to analyze the corresponding trade-off, and apply it to our data. We conclude that passengers flying to seven out of eighteen former Malév destinations where point-to-point carriers entered might be worse off despite potentially paying lower prices.

Keywords: Dehubbing; Low-cost carriers; Network airlines (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1016/j.tre.2014.03.001

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