Did Deregulation Affect Aircraft Engine Maintenance? An Empirical Policy Analysis
AbstractExamination 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 InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 24 (1993)
Issue (Month): 4 (Winter)
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Web page: http://www.rje.org
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- Morton I. Kamien & Daniel R. Vincent, 1991. "Price Regulation and Quality of Service," Discussion Papers 920, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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- Severin Borenstein & Nancy L. Rose, 2013. "How Airline Markets Work…Or Do They? Regulatory Reform in the Airline Industry," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned? National Bureau of Economic Research, Inc.
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