Airline Economics

An Empirical Analysis of Market Structure and Competition in the US Airline Industry

Business & Finance, Economics, Urban & Regional, Management & Leadership, Industrial Management
Cover of the book Airline Economics by Giovanni Alberto Tabacco, Springer International Publishing
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Author: Giovanni Alberto Tabacco ISBN: 9783319467290
Publisher: Springer International Publishing Publication: November 15, 2016
Imprint: Palgrave Macmillan Language: English
Author: Giovanni Alberto Tabacco
ISBN: 9783319467290
Publisher: Springer International Publishing
Publication: November 15, 2016
Imprint: Palgrave Macmillan
Language: English

This book presents an original empirical investigation of the market structure of airline city pair markets, shedding new light on the workings of competitive processes between firms. Examining a cross-section of US airline city pairs, Tabacco proposes for the first time that the industry can be understood as a natural oligopoly, each airline market being dominated by one to three airline carriers regardless of market size. The author questions the extent to which airlines deliberately prevent head-to-head competition within city pair markets, and draws intriguing conclusions about competitive forces from the observed market structure. Uncovering some of the main corporate strategies of the airline industry, the book is of immediate relevance to industry managers and practitioners, as well as academic economists.

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This book presents an original empirical investigation of the market structure of airline city pair markets, shedding new light on the workings of competitive processes between firms. Examining a cross-section of US airline city pairs, Tabacco proposes for the first time that the industry can be understood as a natural oligopoly, each airline market being dominated by one to three airline carriers regardless of market size. The author questions the extent to which airlines deliberately prevent head-to-head competition within city pair markets, and draws intriguing conclusions about competitive forces from the observed market structure. Uncovering some of the main corporate strategies of the airline industry, the book is of immediate relevance to industry managers and practitioners, as well as academic economists.

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