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Airline capacity setting after re-regulation: The Brazilian case in the early 2000s

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  • Bettini, Humberto F.A.J.
  • Oliveira, Alessandro V.M.

Abstract

The Brazilian airline industry is one of the few cases where there was temporary re-regulation of the market after years of economic liberalization. This was done on the basis of excess capacity and after systemic financial crises. Regulators reintroduced mechanisms for market intervention in 2003–2004, with airlines no longer allowed to expand frequencies and fleets at will. Additionally, a code-share agreement between the two biggest network carriers was encouraged to increase the overall profitability. This study looks at an extensive panel of routes to identify elements that affected the decisions Brazilian domestic scheduled passenger airlines made regarding capacity, the factor most affected by the re-regulation.

Suggested Citation

  • Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2008. "Airline capacity setting after re-regulation: The Brazilian case in the early 2000s," Journal of Air Transport Management, Elsevier, vol. 14(6), pages 289-292.
    • Handle: RePEc:eee:jaitra:v:14:y:2008:i:6:p:289-292
    DOI: 10.1016/j.jairtraman.2008.04.006
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    Cited by:

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    3. Koo, Tay T.R. & Lohmann, Gui, 2013. "The spatial effects of domestic aviation deregulation: a comparative study of Australian and Brazilian seat capacity, 1986–2010," Journal of Transport Geography, Elsevier, vol. 29(C), pages 52-62.
    4. Bernardo, Valeria & Fageda, Xavier, 2020. "Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market," Transport Policy, Elsevier, vol. 96(C), pages 141-151.
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    6. Jiaoe Wang & Haoran Yang & Han Wang, 2019. "The Evolution of China’s International Aviation Markets from a Policy Perspective on Air Passenger Flows," Sustainability, MDPI, vol. 11(13), pages 1-15, June.
    7. Fageda, Xavier & Fioravanti, Reinaldo & Ricover, Andy & Café, Eduardo & Ansaldo, Mariano, 2023. "Econometric analysis of the determinants of air cargo services supply in Latin America and the Caribbean," Transport Policy, Elsevier, vol. 135(C), pages 33-44.
    8. Bernardo, Valeria & Fageda, Xavier, 2017. "The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 24-41.
    9. Wang, Jiaoe & Bonilla, David & Banister, David, 2016. "Air deregulation in China and its impact on airline competition 1994–2012," Journal of Transport Geography, Elsevier, vol. 50(C), pages 12-23.
    10. Costa, Tiago F.G. & Lohmann, Gui & Oliveira, Alessandro V.M., 2010. "A model to identify airport hubs and their importance to tourism in Brazil," Research in Transportation Economics, Elsevier, vol. 26(1), pages 3-11.
    11. Brown, Richard S., 2016. "Lobbying, political connectedness and financial performance in the air transportation industry," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 61-69.

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