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Airline Competition in the British Isles

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Author Info

  • Alberto Gaggero

    ()
    (Department of Economics, University of Essex.)

  • Claudio A. Piga

    ()
    (Dept of Economics, Loughborough University)

Abstract

We study the relationship between pricing and market structure on the routes connecting the UK and the Republic of Ireland. Because in 2007 the European Commission prohibited the takeover of Aer Lingus by Ryanair, the analysis focuses on their pricing strategies in particular. We use an original dataset of fares posted on-line, which allows to control for the fares' intertemporal pattern for each specific flight and each carrier's specific yield management system. Our evidence supports the European Commission's view that the elimination of a competitor in the Irish airline market is likely to have harmful consequences for consumers.

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File URL: http://www.lboro.ac.uk/departments/ec/RePEc/lbo/lbowps/airlines_gaggero_piga.pdf
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Bibliographic Info

Paper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2008_12.

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Date of creation: Oct 2008
Date of revision: Oct 2008
Handle: RePEc:lbo:lbowps:2008_12

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Web page: http://www.lboro.ac.uk/departments/sbe/research/economics/index.html
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Keywords: merger policy; consumers; anti-trust.;

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Cited by:
  1. Alderighi, Marco & Cento, Alessandro & Piga, Claudio A., 2011. "A case study of pricing strategies in European airline markets: The London – Amsterdam route," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 369-373.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. Ishii, Ryosuke & Nakagawa, Kuninori, 2011. "An effect of consumer's earlier decision to purchase a discount ticket," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4502, Otaru University of Commerce.

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