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Airline competition in the British Isles

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  • Gaggero, Alberto A.
  • Piga, Claudio A.

Abstract

We study the relationship between pricing and market structure on the routes connecting the UK and the Republic of Ireland. Because in 2007 the European Commission prohibited the takeover of Aer Lingus by Ryanair, the analysis focuses on their pricing strategies in particular. We use an original dataset of fares posted on-line, which allows to control for the fares' inter-temporal pattern for each specific flight and each carrier's specific yield management system. Our evidence supports the European Commission's view that the elimination of a competitor in the Irish airline market is likely to have harmful consequences for consumers.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

Volume (Year): 46 (2010)
Issue (Month): 2 (March)
Pages: 270-279

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Handle: RePEc:eee:transe:v:46:y:2010:i:2:p:270-279

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Related research

Keywords: Merger evaluation Yield management Inter-temporal pricing;

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Cited by:
  1. Ofelia Betancor & Juan Luis Jiménez, 2011. "When trains go faster than planes: the strategic reaction of airlines in Spain," ERSA conference papers ersa11p295, European Regional Science Association.
  2. Alderighi, Marco & Cento, Alessandro & Piga, Claudio A., 2011. "A case study of pricing strategies in European airline markets: The London – Amsterdam route," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 369-373.
  3. Fageda, Xavier & Flores-Fillol, Ricardo, 2011. "Air services on thin routes: Regional versus low-cost airlines," Working Papers 2072/179624, Universitat Rovira i Virgili, Department of Economics.
  4. Ishii, Ryosuke & Nakagawa, Kuninori, 2011. "An effect of consumer's earlier decision to purchase a discount ticket," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4502, Otaru University of Commerce.
  5. Fageda, Xavier & Flores-Fillol, Ricardo, 2012. "Air services on thin routes: Regional versus low-cost airlines," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 702-714.
  6. Xavier Fageda & Ricardo Flores-Fillol, 2011. "Air services on thin routes: Regional versus low-cost airlines," IREA Working Papers 201123, University of Barcelona, Research Institute of Applied Economics, revised Oct 2011.

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