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Estimating the consumer welfare effects of de-hubbing: The case of Malév Hungarian Airlines

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  • Bilotkach, Volodymyr
  • Mueller, Juergen
  • Németh, Adél

Abstract

We document and analyze events that followed bankruptcy of Malév Hungarian Airlines on February 3, 2012. Most of the new services post-bankruptcy came from low-cost point-to-point carriers. Flight frequency offered by such carriers is lower than what was offered by the network airline. Yet, fares charged by these airlines are presumably also lower. We suggest a methodological approach to analyze the corresponding trade-off, and apply it to our data. We conclude that passengers flying to seven out of eighteen former Malév destinations where point-to-point carriers entered might be worse off despite potentially paying lower prices.

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  • Bilotkach, Volodymyr & Mueller, Juergen & Németh, Adél, 2014. "Estimating the consumer welfare effects of de-hubbing: The case of Malév Hungarian Airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 66(C), pages 51-65.
    • Handle: RePEc:eee:transe:v:66:y:2014:i:c:p:51-65
    DOI: 10.1016/j.tre.2014.03.001
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