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Competition

This page included th analysis on competitive forces at play in airline industry.

Reports

Airport Competition
This paper shows that airports enjoy significant market power in their local markets. Competitive forces are not strong enough to ensure a fair outcome for consumers. Robust and effective economic regulation is required.
Full report (pdf)

Network vs. LCC competition and airfares: New US empirical evidence
by Prof. Jan K. Bruechner, Dr Darin Lee and Ethan Singer
When considering airline mergers, both the US Department of Justice and European Commission have relied on published studies from the 1990s which suggest – based on the market structure of that time – there can be adverse competitive effects from reducing the number of network airlines on a given route.  This note describes a new comprehensive research study that now shows the structure of the US domestic market has changed dramatically in the past decade. 
Full report (pdf) 

The competition effects of airline mergers and alliances
by Mike Tretheway, InterVISTAS Consulting Inc
The analysis of the potential competition effects of an airline merger or alliance often focuses on the change in average fare prices. However, this approach is fundamentally flawed. It should be broadened to cover the impact on economic efficiency. The pricing structure of an airline is not uniform; instead different customers are charged different prices. 
Full report (pdf)

 

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