An empirical analysis of a merger between a network and low-cost airlines
Xavier Fageda and
Jordi Perdiguero ()
No XREAP2011-01, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)
We use a difference-in-difference estimator to examine the effects of a merger involving three airlines. The novelty lies in the examination of this operation in two distinct scenarios: (1) on routes where two low-cost carriers and (2) on routes where a network and one of the low-cost airlines had previously been competing. We report a reduction in frequencies but no substantial effect on prices in the first scenario, while in the second we report an increase in prices but no substantial effect on frequencies. These results may be attributed to the differences in passenger types flying on these routes.
Keywords: Mergers; Airline Market; Low-Cost Carriers; Difference-in-Difference (search for similar items in EconPapers)
JEL-codes: L41 L44 L93 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011-05, Revised 2011-05
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http://www.xreap.cat/RePEc/xrp/pdf/XREAP2011-01.pdf First version, 2010 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2011-01.pdf Revised version, 2011 (application/pdf)
Journal Article: An Empirical Analysis of a Merger Between a Network and Low-cost Airlines (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:xrp:wpaper:xreap2011-01
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