An empirical model of airline fleet standardization in Brazil: Assessing the dynamic impacts of mergers with an events study

Rodolfo R. Narcizo, Alessandro Oliveira and Martin E. Dresner

Transport Policy, 2020, vol. 97, issue C, 149-160

Abstract: This paper develops an empirical model to investigate the strategic fleet management practices in the air transport industry regarding airline fleet standardization (AFS). We conduct an econometric analysis of the key drivers of AFS in Brazil and study the dynamic effects of five merger events. We find evidence of a significant drop in AFS following most of the consolidations, which is gradually reversed during the post-merger integration efforts. Additionally, except for the major full-service carrier, all other airlines had an estimated overall trend toward more intense fleet standardization over the entire period, revealing a stronger preference for seeking cost competitiveness over market opportunity when facing competition in the market.

Keywords: Airlines; Aircraft; Fleet diversification; Fleet commonality; Econometrics (search for similar items in EconPapers)
JEL-codes: D22 L11 L93 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:97:y:2020:i:c:p:149-160

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DOI: 10.1016/j.tranpol.2020.05.021

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