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European Airline Reform: An Empirical Welfare Analysis

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Author Info

  • Youdi Schipper
  • Piet Rietveld
  • Peter Nijkamp

Abstract

This study empirically explores welfare effects associated with bilateral airline liberalisation on European interstate routes. To this end, a sample of 34 routes with varying liberalisation status has been investigated econometrically for the period 1988 to 1992. The estimated fare and frequency equations show that standard economy fares are lower and departure frequencies are higher on fully liberalised routes than on routes without such liberalisation. Welfare calculations based on the estimated demand equation indicate that full bilateral liberalisation has resulted in consumer welfare gains. © The London School of Economics and the University of Bath 2002

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

Volume (Year): 36 (2002)
Issue (Month): 2 (May)
Pages: 189-209

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Handle: RePEc:tpe:jtecpo:v:36:y:2002:i:2:p:189-209

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2010. "Scheduled service versus personal transportation: The role of distance," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 60-72, January.
  2. 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.
  3. Maria J. Gil-Molto & Claudio A. Piga, 2005. "Entry and Exit in a Liberalised Market," Discussion Paper Series 2005_10, Department of Economics, Loughborough University, revised May 2006.
  4. Xavier Fageda, 2014. "“What hurts the dominant airlines at hub airports?”," IREA Working Papers 201414, University of Barcelona, Research Institute of Applied Economics, revised May 2014.
  5. Devriendt, Lomme & Burghouwt, Guillaume & Derudder, Ben & de Wit, Jaap & Witlox, Frank, 2009. "Calculating load factors for the transatlantic airline market using supply and demand data – A note on the identification of gaps in the available airline statistics," Journal of Air Transport Management, Elsevier, vol. 15(6), pages 337-343.
  6. Schipper, Youdi & Nijkamp, Peter & Rietveld, Piet, 2007. "Deregulation and welfare in airline markets: An analysis of frequency equilibria," European Journal of Operational Research, Elsevier, vol. 178(1), pages 194-206, April.
  7. Carlsson, Fredrik, 2002. "Price and Frequency Choice under Monopoly and Competition in Aviation Markets," Working Papers in Economics 71, University of Gothenburg, Department of Economics.
  8. 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.
  9. Wang, Kun & Gong, Qiang & Fu, Xiaowen & Fan, Xingli, 2014. "Frequency and aircraft size dynamics in a concentrated growth market: The case of the Chinese domestic market," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 50-58.
  10. Joan Calzada & Xavier Fageda, 2012. "Discounts and Public Service Obligations in the Airline Market: Lessons from Spain," Review of Industrial Organization, Springer, vol. 40(4), pages 291-312, June.
  11. Schipper, Youdi & Rietveld, Piet & Nijkamp, Peter, 2007. "Frequency competition and environmental costs: An application to European air transport liberalization," Socio-Economic Planning Sciences, Elsevier, vol. 41(3), pages 208-223, September.
  12. 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.
  13. Schipper, Youdi & Rietveld, Piet & Nijkamp, Peter, 2003. "Airline deregulation and external costs: a welfare analysis," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 699-718, September.
  14. 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.
  15. Squalli, Jay, 2014. "Airline passenger traffic openness and the performance of Emirates Airline," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 138-145.

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