IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v46y2010i2p270-279.html
   My bibliography  Save this article

Airline competition in the British Isles

Author

Listed:
  • Gaggero, Alberto A.
  • Piga, Claudio A.

Abstract

We study the relationship between pricing and market structure on the routes connecting the UK and the Republic of Ireland. Because in 2007 the European Commission prohibited the takeover of Aer Lingus by Ryanair, the analysis focuses on their pricing strategies in particular. We use an original dataset of fares posted on-line, which allows to control for the fares' inter-temporal pattern for each specific flight and each carrier's specific yield management system. Our evidence supports the European Commission's view that the elimination of a competitor in the Irish airline market is likely to have harmful consequences for consumers.

Suggested Citation

  • Gaggero, Alberto A. & Piga, Claudio A., 2010. "Airline competition in the British Isles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(2), pages 270-279, March.
  • Handle: RePEc:eee:transe:v:46:y:2010:i:2:p:270-279
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136655450900115X
    Download Restriction: Full text for ScienceDirect subscribers only

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

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alderighi, Marco & Gaggero, Alberto A. & Piga, Claudio A., 2015. "The effect of code-share agreements on the temporal profile of airline fares," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 42-54.
    2. Ismail, Noor Azina & Jenatabadi, Hashem Salarzadeh, 2014. "The influence of firm age on the relationships of airline performance, economic situation and internal operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 212-224.
    3. Alderighi, Marco & Cento, Alessandro & Piga, Claudio A., 2011. "A case study of pricing strategies in European airline markets: The London – Amsterdam route," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 369-373.
    4. Capozza, Claudia, 2015. "The effect of rail travel time on airline fares: first evidence from the Italian passenger market," Working Papers 15_3, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    5. Domínguez-Menchero, J. Santos & Rivera, Javier & Torres-Manzanera, Emilio, 2014. "Optimal purchase timing in the airline market," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 137-143.
    6. Ishii, Ryosuke & Nakagawa, Kuninori, 2011. "An effect of consumer's earlier decision to purchase a discount ticket," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4502, Otaru University of Commerce.
    7. Alderighi, Marco & Gaggero, Alberto A & Piga, Claudio A, 2016. "The hidden side of dynamic pricing in airline markets," MPRA Paper 71674, University Library of Munich, Germany.
    8. Angela Stefania Bergantino & Capozza, Claudia, 2012. "Airline Pricing Behaviour Under Limited Intermodal Competition," Working Papers 12_6, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    9. Bergantino, Angela Stefania & Capozza, Claudia, 2014. "One price for all? The role of market captivity as a price discrimination device: evidence from the Italia city-pair markets," Working Papers 1401, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    10. Bergantino, Angela Stefania & Capozza, Claudia, 2015. "One price for all? Price discrimination and market captivity: Evidence from the Italian city-pair markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 231-244.
    11. Angela Stefania Bergantino & Claudia Capozza, 2015. "Airline Pricing Behavior Under Limited Inter-Modal Competition," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 700-713, January.
    12. Agostini, Claudio A. & Inostroza, Diego & Willington, Manuel, 2015. "Price effects of airlines frequent flyer programs: The case of the dominant firm in Chile," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 283-297.
    13. Bergantino, Angela S. & Capozza, Claudia & Capurso, Mauro, 2015. "The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy," Transport Policy, Elsevier, vol. 39(C), pages 77-86.
    14. Fageda, Xavier & Flores-Fillol, Ricardo, 2012. "Air services on thin routes: Regional versus low-cost airlines," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 702-714.
    15. Bergantino, Angela Stefania & Capozza, Claudia, 2014. "One price for all? The role of market captivity as a price discrimination device: evidence from the Italia city-pair markets," Working Papers 14_1, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    16. Alfaro Navarro, José-Luis & Andrés Martínez, María-Encarnación & Trinquecoste, Jean-François, 2015. "The effect of the economic crisis on the behaviour of airline ticket prices. A case-study analysis of the New York–Madrid route," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 48-53.
    17. Capozza, Claudia, 2015. "The effect of rail travel time on airline fares: first evidence from the Italian passenger market," Working Papers 1503, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    18. Ofelia Betancor & Juan Luis Jiménez, 2011. "When trains go faster than planes: the strategic reaction of airlines in Spain," ERSA conference papers ersa11p295, European Regional Science Association.
    19. repec:eee:ecotra:v:11-12:y:2017:i::p:49-59 is not listed on IDEAS
    20. Vigren, Andreas, 2016. "Competition in Swedish passenger railway : entry in an open-access market," Working papers in Transport Economics 2016:18, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    21. Bergantino, Angela Stefania & Capozza, Claudia & Capurso, Mauro, 2015. "The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy," Working Papers 15_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    22. Bergantino, Angela Stefania & Capozza, Claudia & Capurso, Mauro, 2017. "Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy," Working Papers 17_3, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    23. Hashem Salarzadeh Jenatabadi & Peyman Babashamsi & Datis Khajeheian & Nader Seyyed Amiri, 2016. "Airline Sustainability Modeling: A New Framework with Application of Bayesian Structural Equation Modeling," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-17, November.
    24. Varella, Rafael R. & Frazão, Jessica & Oliveira, Alessandro V.M., 2017. "Dynamic pricing and market segmentation responses to low-cost carrier entry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 151-170.
    25. Capozza, Claudia, 2016. "The effect of rail travel time on airline fares: First evidence from the Italian passenger market," Economics of Transportation, Elsevier, vol. 6(C), pages 18-24.

    More about this item

    Keywords

    Merger evaluation Yield management Inter-temporal pricing;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

    Statistics

    Access and download statistics

    Corrections

    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:46:y:2010:i:2:p:270-279. 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: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.