An empirical analysis of a merger between a network and low-cost airlines

Xavier Fageda, Jordi Perdiguero

Research output: Contribution to journalArticleResearchpeer-review

11 Citations (Scopus)

Abstract

We use a difference-in-difference estimator to examine the effects of a merger between three airline companies on two types of route: (1) on those where two low-cost carriers and (2) on those where a network carrier and one of the low-cost airlines had previously been competing. We report a reduction in flight frequencies but find no substantial effect on prices in the first case, while in the second we report an increase in prices but no substantial effect on frequencies. The results would seem to be attributable to the differences in the types of passenger flying these routes.
Original languageEnglish
Pages (from-to)81-96
JournalJournal of Transport Economics and Policy
Volume48
Issue numberPART 1
Publication statusPublished - 1 Jan 2014

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