Topic: 13.4 Aviation

A complete indexing and article service is available free from 1967 to 2000

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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Modelling and Testing the Effect of Market Structure on Price: The Case of International Air transport

A model is developed to test for the effect on international airline prices of a number of market structure variables, most importantly the US liberal bilateral policy implemented in 1978. The results indicate that liberal bilateral agreements reduce discount fares but not full fares. This implies that holiday-makers and other discretionary travellers are the prime beneficiaries from a liberal bilateral policy.

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Peak-Load Pricing in Aviation: The Case of Charter Air Fares

This paper examines how decisions on pricing and the allocation of capital inputs are determined in the market for charter air travel between the UK and Europe. Charter air fares exhibit a well defined peak-load structure and one which had responded flexibly to the constraints which have recently arisen in airport and airspace capacity. This suggests that the price mechanism is an effective instrument for resolving the allocation of peak capacity in aviation markets.

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The Optimal Pricing of Freight in Combination Aircraft

Where freight is carried in the bellies of combination aircraft which also carry passengers, Professor Miller concludes that the service is in the long run neither a joint product nor a by-product, and that the U.S. Civil Aeronautics Board is right in regulating charges by reference to freighter costs.

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