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.

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