IDEAS home Printed from
   My bibliography  Save this article

The effects of airline alliances on markets and economic welfare


  • Park, Jong-Hun


Recently, major airlines have been extending their service networks via strategic alliances with other airlines as a means of forming global service networks. This theoretical analysis examines the effects on firms' outputs and profits, air fare, and economic welfare of two types of airline alliances: complementary and parallel alliances. It is shown that the two alliances have different effects on output and economic welfare. The complementary alliance is likely to increase economic welfare, while the parallel alliance to decrease it. We also find conditions under which each type of alliance generates welfare improvement. Some policy implications are derived based on these findings.

Suggested Citation

  • Park, Jong-Hun, 1997. "The effects of airline alliances on markets and economic welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(3), pages 181-195, September.
  • Handle: RePEc:eee:transe:v:33:y:1997:i:3:p:181-195

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Severin Borenstein, 1992. "The Evolution of U.S. Airline Competition," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 45-73, Spring.
    2. Paul W. Bauer & Thomas J. Zlatoper, 1989. "The determinants of direct air fares to Cleveland: how competitive?," Economic Review, Federal Reserve Bank of Cleveland, issue Q I, pages 2-9.
    3. Hurdle, Gloria J, et al, 1989. "Concentration, Potential Entry, and Performance in the Airline Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 119-139, December.
    4. Morrison, Steven A & Winston, Clifford, 1987. "Empirical Implications and Tests of the Contestability Hypothesis," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 53-66, April.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:33:y:1997:i:3:p:181-195. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.