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Regulation, competition and network evolution in aviation

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  • Gillen, David
  • Morrison, William G.

Abstract

Our focus is the evolution of business strategies and network structure decisions in the commercial passenger aviation industry. The paper reviews the growth of hub-and-spoke networks as the dominant business model following deregulation in the latter part of the 20th century, followed by the emergence of value-based airlines as a global phenomenon at the end of the century. The paper highlights the link between airline business strategies and network structures, and examines the resulting competition between divergent network structure business models. In this context we discuss issues of market structure stability and the role played by competition policy.

Suggested Citation

  • Gillen, David & Morrison, William G., 2005. "Regulation, competition and network evolution in aviation," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 161-174.
    • Handle: RePEc:eee:jaitra:v:11:y:2005:i:3:p:161-174
    DOI: 10.1016/j.jairtraman.2005.03.002
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    References listed on IDEAS

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    1. Ken Hendricks & Michele Piccione & Guofu Tan, 1995. "The Economics of Hubs: The Case of Monopoly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(1), pages 83-99.
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    3. Gillen, David & Morrison, William, 2003. "Bundling, integration and the delivered price of air travel: are low cost carriers full service competitors?," Journal of Air Transport Management, Elsevier, vol. 9(1), pages 15-23.
    4. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2000. "A note on the optimality of airline networks," Economics Letters, Elsevier, vol. 69(3), pages 429-434, December.
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    Cited by:

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    5. Kappes, Jan Willem & Merkert, Rico, 2013. "Barriers to entry into European aviation markets revisited: A review and analysis of managerial perceptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 58-69.
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    8. Bießlich, Peter & Wegmann, Kai & Lütjens, Klaus & Gollnick, Volker, 2018. "A hierarchical metamodeling approach for airline costs," Journal of Air Transport Management, Elsevier, vol. 71(C), pages 193-200.
    9. Emmanouil Tranos, 2011. "The Topology and the Emerging Urban Geographies of the Internet Backbone and Aviation Networks in Europe: A Comparative Study," Environment and Planning A, , vol. 43(2), pages 378-392, February.
    10. Fabio Domanico, 2007. "The European airline industry: law and economics of low cost carriers," European Journal of Law and Economics, Springer, vol. 23(3), pages 199-221, June.
    11. Soojung Kim & Jinsoo Hwang, 2023. "Airline CSR and Quality Attributes as Driving Forces of Passengers’ Brand Love: Comparing Full-Service Carriers with Low-Cost Carriers," Sustainability, MDPI, vol. 15(9), pages 1-14, April.
    12. Burghouwt, Guillaume, 2014. "Long-haul specialization patterns in European multihub airline networks – An exploratory analysis," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 30-41.
    13. Gupta, Gautam & Goodchild, Anne & Hansen, Mark, 2011. "A competitive, charter air-service planning model for student athlete travel," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 128-149, January.
    14. Chang, Yu-Chun & Lee, Wei-Hao & Wu, Yi-Ting & Hsiao, Chien-You, 2022. "Airport transfer dependency on neighbour hubs – The case of Taoyuan Airport's aviation network," Transport Policy, Elsevier, vol. 124(C), pages 212-220.
    15. Seo, Kwanglim & Moon, Joonho & Lee, Seoki, 2015. "Synergy of corporate social responsibility and service quality for airlines: The moderating role of carrier type," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 126-134.
    16. Sun, Xiaoqian & Wandelt, Sebastian & Zhang, Anming, 2021. "On the degree of synchronization between air transport connectivity and COVID-19 cases at worldwide level," Transport Policy, Elsevier, vol. 105(C), pages 115-123.
    17. Graham, Mark, 2009. "Different models in different spaces or liberalized optimizations? Competitive strategies among low-cost carriers," Journal of Transport Geography, Elsevier, vol. 17(4), pages 306-316.
    18. Fan, Terence Ping Ching & Lingblad, Mats, 2016. "Thinking through the meteoric rise of Middle-East carriers from Singapore Airlines' vantage point," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 111-122.
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    21. Eva Jansson, 0. "Deregulation, property rights, and legal system," European Journal of Law and Economics, Springer, vol. 0, pages 1-25.

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