Entry and Exit by European Low-Cost and Traditional Carriers

Maria José Gil-Moltó and Claudio Piga
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Maria José Gil-Moltó: Department of Economics, University of Leicester, University Road, Leicester LE1 7RH, UK and Rimini Centre for Economic Analysis, Italy

Tourism Economics, 2008, vol. 14, issue 3, 577-598

Abstract: The authors analyse the entry and exit activity in the UK–Europe airline markets and study the differential traits of three main airlines (British Airways, EasyJet and RyanAir) during1997–2004. They find that entry and exit are more likely in large markets and in markets with a high number of incumbents. Already operating in the city-pair enhances the probability that the same firm will enter another route in the same city-pair. The existence of charter flights generates both entries and exits, while high seasonality generally discourages entry. Also, the level of service quality provided by the incumbents matters.

Keywords: entry; exit; airlines; conditional logit (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:14:y:2008:i:3:p:577-598

DOI: 10.5367/000000008785633550

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