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Airline alliances and antitrust policy: The role of efficiencies

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  • Bilotkach, Volodymyr
  • Hüschelrath, Kai

Abstract

The paper discusses selected antitrust implications of airline alliances. In addition to a categorization of airline alliances and a brief discussion of their key competitive effects, our focus is on an assessment of efficiencies triggered by various degrees of airline cooperation. We find that most types of efficiencies can only be considered as partly immunity-specific and should therefore enter an assessment of the economic effects of antitrust immunity only with the respective incremental benefits.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Air Transport Management.

Volume (Year): 21 (2012)
Issue (Month): C ()
Pages: 76-84

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Handle: RePEc:eee:jaitra:v:21:y:2012:i:c:p:76-84

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Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/

Related research

Keywords: Air transportation; Alliance; Efficiency; Antitrust immunity;

References

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  1. Volodymyr Bilotkach, 2005. "Price Competition between International Airline Alliances," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 39(2), pages 167-190, May.
  2. Rabah Amir & Effrosyni Diamantoudi & Licun Xue, 2006. "Merger Performance Under Uncertain Efficiency Gains," Departmental Working Papers 2005-07, McGill University, Department of Economics.
  3. Joseph Farrell and Carl Shapiro., 2000. "Scale Economies and Synergies in Horizontal Merger Analysis," Economics Working Papers E00-291, University of California at Berkeley.
  4. Joseph Farrell & Michael Katz, 2006. "The Economics of Welfare Standards in Antitrust," CPI Journal, Competition Policy International, vol. 2.
  5. Philippe Barla & Christos Constantatos, 2006. "On The Choice between Strategic Alliance and Merger in the Airline Sector: The Role of Strategic Effects," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 40(3), pages 409-424, September.
  6. Jan K. Brueckner, 2003. "International Airfares in the Age of Alliances: The Effects of Codesharing and Antitrust Immunity," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 105-118, February.
  7. Volodymyr Bilotkach, 2007. "Price effects of airline consolidation: evidence from a sample of transatlantic markets," Empirical Economics, Springer, vol. 33(3), pages 427-448, November.
  8. Klaus Gugler & Dennis C. Mueller & B. Burcin Yurtoglu & Christine Zulehner, 2001. "The Effects of Mergers: An International Comparison," CIG Working Papers FS IV 01-21, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  9. W. Whalen, 2007. "A panel data analysis of code-sharing, antitrust immunity, and open skies treaties in international aviation markets," Review of Industrial Organization, Springer, vol. 30(1), pages 39-61, February.
  10. Brueckner, Jan K & Whalen, W Tom, 2000. "The Price Effects of International Airline Alliances," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 503-45, October.
  11. Ricardo Flores-Fillol & Rafael Moner-Colonques, 2007. "Strategic Formation of Airline Alliances," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(3), pages 427-449, September.
  12. Chen, Yongmin & Gayle, Philip G., 2007. "Vertical contracting between airlines: An equilibrium analysis of codeshare alliances," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1046-1060, October.
  13. Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
  14. Jong-Hun Park & Anming Zhang, 2000. "An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets," Review of Industrial Organization, Springer, vol. 16(4), pages 367-384, June.
  15. Bilotkach, Volodymyr, 2007. "Complementary versus semi-complementary airline partnerships," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 381-393, May.
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Cited by:
  1. Bilotkach, Volodymyr & Hüschelrath, Kai, 2012. "Airline alliances, antitrust immunity and market foreclosure," ZEW Discussion Papers 10-083 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Piotr Niewiadomski, 2013. "International airline groups in Africa," Brooks World Poverty Institute Working Paper Series ctg-2013-36, BWPI, The University of Manchester.

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