Demand and Consumer Welfare Impacts of International Airline Liberalisation: The Case of the North Atlantic

Demand and Consumer Welfare Impacts of International Airline Liberalisation: The Case of the North Atlantic

A demand model, estimated at the country-pair level, suggests that demand is slightly fare inelastic, and that demand has responded positively, though inelastically, to changes in a measure of how much non-stop service is available. A yield model is estimated to assess the impact of bilateral liberalisation on fares and accessibility.

Share Content

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Articles

An Analysis of Fortress Hubs in Airline Networks

This paper explores the possibility that the fortress hub is a consequence of the nature of airline hub-spoke rivalry. Entry into a competitor’s local market may reduce the entrant’s profit in his own market. As a result, there is a deterrent to entry if the negative effects are strong enough. The paper also examines the impacts of local competition on consumer surplus and total social surplus.

View Journal »

The Choice between Cars and Buses on Urban Roads

As a practical criterion it is suggested that a balance between private and public passenger transport might be planned with the object of minimising the total of all journey times. The data needed to implement such a criterion are described and a hypothetical example is give using data relating to Leicester. The method of diverting passengers from private to public transport is not revealed.

View Journal »