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Airline Partnerships and Schedule Coordination

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  • Volodymyr Bilotkach

Abstract

Scheduling coordination is considered both a reason for and a consequence of airline consolidation. The authors formally model this dimension of airline partnerships, with complementary alliance where stop-over delays affect passengers' utility. They compare partnership where carriers are only allowed to coordinate scheduling to the one, where airlines can jointly set prices and schedules. Coordination in fares and schedules yields lower fares and better scheduling coordination. Coordination in only the price results in lower consumer welfare than under no coordination. The authors suggest an example of a complementary airline alliance hurting interline passengers. © 2007 LSE and the University of Bath

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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): 41 (2007)
Issue (Month): 3 (September)
Pages: 413-425

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Handle: RePEc:tpe:jtecpo:v:41:y:2007:i:3:p:413-425

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

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Cited by:
  1. Jan K. Brueckner & Stef Proost, 2009. "Carve-Outs under Airline Antitrust Immunity," CESifo Working Paper Series 2848, CESifo Group Munich.

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