Patterns and effects of entry in US airline markets

Kai Hüschelrath and Kathrin Müller
Authors registered in the RePEc Author Service: Kai Hueschelrath

No 11-059, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We use T-100 traffic data and DB1B fare data from the U.S. Department of Transportation to identify patterns and effects of entry by network carriers and low-cost carriers in non-stop U.S. airline markets. For the sample period from 1996 to 2009, we find that entry activity of low-cost carriers did not only experience significant absolute increases but also led to substantial fare reductions. As route entries by network carriers do not have comparable effects, the existence and expansion of low-cost carriers must be considered as the main driver of competition in the domestic U.S. airline industry.

Keywords: Airline industry; liberalisation; entry; low-cost carriers (search for similar items in EconPapers)
JEL-codes: L40 L93 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-bec, nep-com, nep-ind, nep-net and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Patterns and Effects of Entry in U.S. Airline Markets (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:11059

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