The Impact of an Old Fleet on the Demand for Air Transportation: The Case of VASP Brazilian Airlines
AbstractIn 05/25/1982, the VASP aircraft broke in two after a hard landing killing 2 people. The pilot's misuse of rain repellant, caused an optical illusion leading to the hard landing. Since that day, VASP started to have constant problems. A brief history about VASP is discussed. After so many problems, VASP lost its market share and became the 4th airline of Brazil, VASP used to be second place. With financial problems, VASP could not buy new airplanes and its fleet was from the 70-80s. This paper aims to study if an old fleet could affect the demand for air transportation.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0506005.
Length: 6 pages
Date of creation: 09 Jun 2005
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Note: Type of Document - pdf; pages: 6
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Air Transportation; Airline; Demand; VASP; GOL; Brazil;
Find related papers by JEL classification:
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-06-14 (All new papers)
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- Douglas, George W & Miller, James C, III, 1974. "Quality Competition, Industry Equilibrium, and Efficiency in the Price-Constrained Airline Market," American Economic Review, American Economic Association, vol. 64(4), pages 657-69, September.
- Reuben Gronau, 1970. "The Value of Time in Passenger Transportation: The Demand for Air Travel," NBER Books, National Bureau of Economic Research, Inc, number gron70-1, July.
- Anderson, James E & Kraus, Marvin, 1981. "Quality of Service and the Demand for Air Travel," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 533-40, November.
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