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Regulation, Market Structure and Performance in Air Passenger Transportation

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  • Rauf Gönenç
  • Giuseppe Nicoletti

Abstract

The paper uses a data base on regulation, market structure and performance in the air passenger transportation industry, to analyse the links among liberalisation, private ownership, competition, efficiency and airfares at national and route levels. Covering the 1996-97 travel season, 21 aggregate indicators have been developed for 27 OECD countries, and 23 micro indicators for 102 air routes connecting 14 major international airports. These data, summarised by means of factor analysis show that i) regulations affecting the air industry vary heavily across countries and routes; ii) in most markets, air services are still provided by a few carriers, generally dominated by an incumbent flag-carrier or by an airline alliance between incumbents; iii) only in a few cases new entrant airlines play a significant role; iv) in a large number of airports, a single airline controls more than half of the available slots; v) as a result, few international routes are truly open to ... Cette étude utilise une base de données concernant la régulation, la structure des marchés et la performance dans le transport aérien de passagers, au niveau national ainsi qu’au niveau des lignes, pour analyser les liens entre d’une part la libéralisation, la privatisation et la concurrence et, d’autre part, l’efficacité de l’industrie et les tarifs des voyages aériens. Pour la saison 1996-97, il a été possible de développer 21 indicateurs agrégés pour 27 pays de l’OCDE et 23 indicateurs détaillés pour 102 lignes aériennes reliant 14 grands aéroports internationaux. Ces données, synthétisées à l’aide de l’analyse factorielle, montrent que i) la régulation de l’industrie du transport aérien varie remarquablement selon les pays et les lignes ; ii) dans la majorité des marchés, les services de transport aérien sont encore fournis par un nombre restreint de vecteurs, qui sont généralement dominés par une compagnie nationale présente depuis longtemps sur le marché ou par une alliance ...

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File URL: http://dx.doi.org/10.1787/163610427241
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 254.

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Date of creation: 03 Aug 2000
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Handle: RePEc:oec:ecoaaa:254-en

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Keywords: air transport; business strategy; economics of regulation; regulated industries; market structure; liberalisation; competition; économie de la régulation; structure de marché; entreprise publique; concurrence; stratégie d'entreprise; industrie réglementée; transport aérien; libéralisation;

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Cited by:
  1. Kugler, Adriana D. & Pica, Giovanni, 2004. "Effects of Employment Protection and Product Market Regulations on the Italian Labour Market," CEPR Discussion Papers 4216, C.E.P.R. Discussion Papers.
  2. Arvis, Jean-François & Shepherd, Ben, 2011. "The air connectivity index : measuring integration in the global air transport network," Policy Research Working Paper Series 5722, The World Bank.
  3. Lücke, Matthias & Spinanger, Dean, 2004. "Liberalizing international trade in services: Challenges and opportunities for developing countries," Kiel Discussion Papers 412, Kiel Institute for the World Economy (IfW).
  4. Cheng, Kuangnen & Lee, Zu-Hsu & Shomali, Hamid, 2012. "Airline firm boundary and ticket distribution in electronic markets," International Journal of Production Economics, Elsevier, vol. 137(1), pages 137-144.
  5. Adriana Kugler & Giovanni Pica, 2003. "The Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," LABORatorio R. Revelli Working Papers Series 28, LABORatorio R. Revelli, Centre for Employment Studies.
  6. Zhang, Yahua & Findlay, Christopher, 2014. "Air transport policy and its impacts on passenger traffic and tourist flows," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 42-48.
  7. World Bank, 2009. "Tunisia's Global Integration : A Second Generation of Reforms to Boost Growth and Employment," World Bank Publications, The World Bank, number 6298.
  8. Piermartini, Roberta & Rousova, Linda, 2009. "Free Sky and Clouds of Restrictions," Discussion Papers in Economics 10944, University of Munich, Department of Economics.
  9. Geloso Grosso, Massimo & Shepherd, Ben, 2011. "Air cargo transport in APEC: Regulation and effects on merchandise trade," Journal of Asian Economics, Elsevier, vol. 22(3), pages 203-212, June.
  10. Alan V. Deardorff & Robert M. Stern, 2003. "Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization," Working Papers 505, Research Seminar in International Economics, University of Michigan.
  11. Cristea, Anca & Hillberry, Russell & Mattoo, Aaditya, 2014. "Open skies over the Middle East," Policy Research Working Paper Series 6937, The World Bank.

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