Hay competencia en el mercado europeo de transporte aereo?: el caso espanol
AbstractThe liberalisation of air transport that took place in the European Union at the beginning of the nineties has involved positive effects on the welfare traveller. However, there is an agreement in the academic literature that such effects depend on the existence of an effective competition at the level of the route. In this way, we deal with competition concerns referred to the scale advantages of major airlines in each domestic market. In addition to this, we try to capture product differentiation as one of the essential features of the airline industry. In order to achieve these goals, we firstly analyse the main economic aspects that determine competition in the airline industry. And secondly, we implement an empirical model based on a three equations system, which is estimated through the instrumental variables technique. The sample used includes most of routes of the Spanish domestic market of regular flights where competition does exist for 2001. Our results show the existence of different competition conditions according to the market segment in which airlines address their services. Indeed, price (quality) competition seems to be dominant in the segment of leisure (business) passengers. Furthermore, we also find that the major airlines dominance of the market relies on the competitive advantages in terms of cost and demand that provides the control of the Spanish airport network. We conclude that the maintenance and/or increase of the air liberalisation benefits require expanding liberalisation to airports space allocation and decentralising its management.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 109.
Length: 33 pages
Date of creation: 2003
Date of revision:
Contact details of provider:
Postal: Espai de Recerca en Economia, Facultat de CiÃ¨ncies EconÃ²miques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
Web page: http://www.ere.ub.es
More information through EDIRC
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Espai de Recerca en Economia).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.