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The Performance of European Full Service Airlines after Liberalisation: An Econometric Analysis

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Author Info
Lara Gitto () (University of Rome "Tor Vergata" and University of Messina)
Fulvio Minervini () (University of Macerata and University of Warwick)

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Abstract

Deregulation in the airline industry has forced full service airlines to change their strategies in order to respond to increasing challenges. In this paper, an econometric analysis of the possible determinants of economic performance of full service airlines after liberalisation has been carried out. A fixed effects model was used and the performance of ten European full service airlines has been analysed over a period of 11 years. Variables considered in this analysis were the number and type of aircraft in the fleet, the number and type of destinations, investments, number of employees and alliances. The analysis suggests that full service airlines should adjust fleet composition and re-organise operations on their routes in order to react to the increasingly competitive environment.

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File URL: http://www.rivistapoliticaeconomica.it/2007/gen-feb/Gitto-Minervini.pdf
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Publisher Info
Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 97 (2007)
Issue (Month): 1 (January-February)
Pages: 105-122
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Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:105-122

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Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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  1. Borenstein, Severin, 1992. "The Evolution of U.S. Airline Competition," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 45-73, Spring. [Downloadable!] (restricted)
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  2. Neven, Damien J. & Roller, Lars-Hendrik, 1996. "Rent sharing in the European airline industry," European Economic Review, Elsevier, vol. 40(3-5), pages 933-940, April. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.

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