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Airline Competition in the British Isles

Alberto Gaggero () and Claudio Piga ()

Discussion Paper Series from Department of Economics, Loughborough University

Abstract: We study the relationship between pricing and market structure on the routes connecting the UK and the Republic of Ireland. Because in 2007 the European Commission prohibited the takeover of Aer Lingus by Ryanair, the analysis focuses on their pricing strategies in particular. We use an original dataset of fares posted on-line, which allows to control for the fares' intertemporal pattern for each specific flight and each carrier's specific yield management system. Our evidence supports the European Commission's view that the elimination of a competitor in the Irish airline market is likely to have harmful consequences for consumers.

Keywords: merger policy; consumers; anti-trust. (search for similar items in EconPapers)
JEL-codes: L11 D61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ind and nep-ure
Date: 2008-10, Revised 2008-10
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Journal Article: Airline competition in the British Isles (2010) Downloads
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Handle: RePEc:lbo:lbowps:2008_12