Airlines Alliances – Burst of Benefits or Competition Threats?

Utureanu Simona () and Dragomir Cristina ()
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Utureanu Simona: "Ovidius” University from Constanta, Faculty of Economic Sciences
Dragomir Cristina: Constanta Maritime University, Faculty of Navigation and Naval Transport

Ovidius University Annals, Economic Sciences Series, 2014, vol. XIV, issue 2, 403-407

Abstract: In the airline domain, carriers enter into cooperative arrangements to generate greater profit, to reduce unit costs from economies of size and to minimize or share risks by strengthening their position on new markets. This paper analyses tactical and strategic airline alliances and presents the effects of airline alliances on market price, referring to the problem of double marginalization effect. In order not to become threats for free competition, in EU airline alliances are constantly monitored by the vigilant eye of EU Commission.

Keywords: code sharing; aircraft; joint venture; double marginalization; antitrust (search for similar items in EconPapers)
JEL-codes: O18 R40 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xiv:y:2014:i:2:p:403-407

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