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Airline Partnerships and Schedule Coordination

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  • Volodymyr Bilotkach

Abstract

Scheduling coordination is considered both a reason for and a consequence of airline consolidation. The authors formally model this dimension of airline partnerships, with complementary alliance where stop-over delays affect passengers' utility. They compare partnership where carriers are only allowed to coordinate scheduling to the one, where airlines can jointly set prices and schedules. Coordination in fares and schedules yields lower fares and better scheduling coordination. Coordination in only the price results in lower consumer welfare than under no coordination. The authors suggest an example of a complementary airline alliance hurting interline passengers. © 2007 LSE and the University of Bath

Suggested Citation

  • Volodymyr Bilotkach, 2007. "Airline Partnerships and Schedule Coordination," Journal of Transport Economics and Policy, University of Bath, vol. 41(3), pages 413-425, September.
  • Handle: RePEc:tpe:jtecpo:v:41:y:2007:i:3:p:413-425
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    Cited by:

    1. Zhang, Anming & Czerny, Achim I., 2012. "Airports and airlines economics and policy: An interpretive review of recent research," Economics of Transportation, Elsevier, vol. 1(1), pages 15-34.
    2. Daniel Rijken & Vincent (V.A.C.) van den Berg, 2017. "The Impact of Airline Mergers on Quality: Why Do Different Mergers Have Such Different Effects?," Tinbergen Institute Discussion Papers 17-079/VIII, Tinbergen Institute.
    3. Brueckner, Jan K. & Proost, Stef, 2010. "Carve-outs under airline antitrust immunity," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 657-668, November.
    4. Adler, Nicole & Hanany, Eran, 2016. "Regulating inter-firm agreements: The case of airline codesharing in parallel networks," Transportation Research Part B: Methodological, Elsevier, vol. 84(C), pages 31-54.
    5. Czerny, Achim I. & Zhang, Anming, 2015. "How to mix per-flight and per-passenger based airport charges," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 77-95.
    6. Brekalo, Lisa & Albers, Sascha, 2015. "Effective logistics alliance design and management," Working Paper Series 113, University of Cologne, Department of Business Policy and Logistics.
    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.

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