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 google
Google+
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 »