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Airlines Alliances – Burst of Benefits or Competition Threats?

Author

Listed:
  • Utureanu Simona

    ("Ovidius” University from Constanta, Faculty of Economic Sciences)

  • Dragomir Cristina

    (Constanta Maritime University, Faculty of Navigation and Naval Transport)

Abstract

In the airline domain, carriers enter into cooperative arrangements to generate greater profit, to reduce unit costs from economies of size and to minimize or share risks by strengthening their position on new markets. This paper analyses tactical and strategic airline alliances and presents the effects of airline alliances on market price, referring to the problem of double marginalization effect. In order not to become threats for free competition, in EU airline alliances are constantly monitored by the vigilant eye of EU Commission.

Suggested Citation

  • Utureanu Simona & Dragomir Cristina, 2014. "Airlines Alliances – Burst of Benefits or Competition Threats?," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 403-407, May.
    • Handle: RePEc:ovi:oviste:v:xiv:y:2014:i:2:p:403-407
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    File URL: http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/ANALE%20vol%2014%20issue_2_2014.pdf
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    More about this item

    Keywords

    code sharing; aircraft; joint venture; double marginalization; antitrust;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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