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Airline alliances and antitrust policy: The role of efficiencies

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  • Bilotkach, Volodymyr
  • Hüschelrath, Kai

Abstract

The paper discusses selected antitrust implications of airline alliances. In addition to a categorization of airline alliances and a brief discussion of their key competitive effects, our focus is on an assessment of efficiencies triggered by various degrees of airline cooperation. We find that most types of efficiencies can only be considered as partly immunity-specific and should therefore enter an assessment of the economic effects of antitrust immunity only with the respective incremental benefits.

Suggested Citation

  • Bilotkach, Volodymyr & Hüschelrath, Kai, 2012. "Airline alliances and antitrust policy: The role of efficiencies," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 76-84.
  • Handle: RePEc:eee:jaitra:v:21:y:2012:i:c:p:76-84 DOI: 10.1016/j.jairtraman.2011.12.019
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    References listed on IDEAS

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    10. Amir, Rabah & Diamantoudi, Effrosyni & Xue, Licun, 2009. "Merger performance under uncertain efficiency gains," International Journal of Industrial Organization, Elsevier, pages 264-273.
    11. Volodymyr Bilotkach, 2007. "Price effects of airline consolidation: evidence from a sample of transatlantic markets," Empirical Economics, Springer, pages 427-448.
    12. Volodymyr Bilotkach, 2005. "Price Competition between International Airline Alliances," Journal of Transport Economics and Policy, University of Bath, vol. 39(2), pages 167-190, May.
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    Citations

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    Cited by:

    1. Garg, Chandra Prakash, 2016. "A robust hybrid decision model for evaluation and selection of the strategic alliance partner in the airline industry," Journal of Air Transport Management, Elsevier, pages 55-66.
    2. repec:cbu:jrnlec:y:2017:v:4:p:161-168 is not listed on IDEAS
    3. Alderighi, Marco & Gaggero, Alberto A., 2014. "The effects of global alliances on international flight frequencies: Some evidence from Italy," Journal of Air Transport Management, Elsevier, pages 30-33.
    4. Wanke, Peter & Barros, C.P., 2016. "Efficiency in Latin American airlines: A two-stage approach combining Virtual Frontier Dynamic DEA and Simplex Regression," Journal of Air Transport Management, Elsevier, pages 93-103.
    5. repec:eee:transa:v:103:y:2017:i:c:p:444-454 is not listed on IDEAS
    6. Gayle, Philip G. & Thomas, Tyson, 2016. "Assessing firm behavior in carve-out markets: Evidence on the impact of carve-out policy," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 178-194.
    7. Bilotkach, Volodymyr & Hüschelrath, Kai, 2015. "Balancing competition and cooperation: Evidence from transatlantic airline markets," ZEW Discussion Papers 15-059, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Bilotkach, Volodymyr & Hüschelrath, Kai, 2012. "Airline alliances, antitrust immunity and market foreclosure," ZEW Discussion Papers 10-083 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Tsuyoshi Toshimitsu, 2017. "Analysis of Merger Control in A Network Products Market," Discussion Paper Series 169, School of Economics, Kwansei Gakuin University, revised Nov 2017.
    10. Kai Hüschelrath & Jürgen Weigand, 2013. "Fighting hard core cartels," Chapters,in: The International Handbook of Competition – Second Edition, chapter 11, pages 307-369 Edward Elgar Publishing.
    11. Chao, Ching-Cheng & Kao, Ko-Ting, 2015. "Selection of strategic cargo alliance by airlines," Journal of Air Transport Management, Elsevier, pages 29-36.
    12. Barros, Carlos Pestana & Wanke, Peter, 2015. "An analysis of African airlines efficiency with two-stage TOPSIS and neural networks," Journal of Air Transport Management, Elsevier, pages 90-102.
    13. William Morrison, Jaap de Wit, 2017. "US Open Skies Agreements and Unlevel Playing Fields," LCERPA Working Papers 0104, Laurier Centre for Economic Research and Policy Analysis, revised 01 Aug 2017.
    14. Piotr Niewiadomski, 2013. "International airline groups in Africa," Brooks World Poverty Institute Working Paper Series ctg-2013-36, BWPI, The University of Manchester.
    15. Volodymyr Bilotkach & Kai Hüschelrath, 2013. "Airline Alliances, Antitrust Immunity, and Market Foreclosure," The Review of Economics and Statistics, MIT Press, pages 1368-1385.
    16. repec:eee:transa:v:101:y:2017:i:c:p:1-10 is not listed on IDEAS
    17. Wanke, Peter & Pestana Barros, Carlos & Chen, Zhongfei, 2015. "An analysis of Asian airlines efficiency with two-stage TOPSIS and MCMC generalized linear mixed models," International Journal of Production Economics, Elsevier, vol. 169(C), pages 110-126.

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