Airline Mergers: A Longer View

Airline Mergers: A Longer View

This paper examines relative fares and route competition for several years before and after the mergers. This captures trends that preceded the mergers as well as effects that take longer than a year to materialise. The results, which need to be interpreted with caution, suggest that the effects of some mergers are benign while others can lead to significant fare increases.

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Economies of Scale in Bus transport: I. Some British Municipal Results

This study was prompted by the proposal to merge a number of municipal transport undertakings into Passenger transport Authorities. The authors analyse figures showing various working expenses per bus-mile, and find no evidence of scale economies. They point out, however, that the P.T.A.s will be larger than any undertaking in their sample, and that a different conclusion might conceivably be reached if data were available on costs per passenger-mile. Extension of one-man operation appears to offer greater scope for economies than amalgamation.

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