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Did Deregulation Affect Aircraft Engine Maintenance? An Empirical Policy Analysis

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  • D. Mark Kennet

Abstract

Examination of aircraft engine histories provided by Pratt & Whitney, Inc., indicates a significant increase in the number of engine hours between major overhauls in the period following deregulation. Parametric analysis of times between overhauls, which controls for other variables affecting the length of the shop visit cycle, suggests that deregulation is a significant factor in the change. Logit analysis, however, shows that engine "failures" (as measured by in-flight shutdowns) have not increased as a result of deregulation. These findings suggest that airlines have responded to competitive pressures by optimizing scheduled service times and perhaps by improving the quality of service performed by paying less attention to minor problems between scheduled shop visits.

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Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 24 (1993)
Issue (Month): 4 (Winter)
Pages: 542-558

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Handle: RePEc:rje:randje:v:24:y:1993:i:winter:p:542-558

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Cited by:
  1. Victor Aguirregabiria, 2007. "Another Look at the Identification of Dynamic Discrete Decision Processes: With an Application to Retirement Behavior," Working Papers, University of Toronto, Department of Economics tecipa-282, University of Toronto, Department of Economics.
  2. Aguirregabiria, Victor & Mira, Pedro, 2010. "Dynamic discrete choice structural models: A survey," Journal of Econometrics, Elsevier, Elsevier, vol. 156(1), pages 38-67, May.
  3. Victor Aguirregabiria, 2005. "Another Look at the Identification of Dynamic Discrete Decision Processes," Econometrics, EconWPA 0504006, EconWPA.
  4. Nancy L. Rose, 1991. "Fear of Flying? Economic Analysis of Airline Safety," NBER Working Papers 3784, National Bureau of Economic Research, Inc.
  5. Morton I. Kamien & Daniel R. Vincent, 1991. "Price Regulation and Quality of Service," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 920, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Severin Borenstein & Nancy L. Rose, 2007. "How Airline Markets Work...Or Do They? Regulatory Reform in the Airline Industry," NBER Working Papers 13452, National Bureau of Economic Research, Inc.
  7. Severin Borenstein & Nancy L. Rose, 2013. "How Airline Markets Work…or Do They? Regulatory Reform in the Airline Industry," NBER Chapters, National Bureau of Economic Research, Inc, in: Economic Regulation and Its Reform: What Have We Learned?, pages 63-135 National Bureau of Economic Research, Inc.

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