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The Determinants of Airline Alliances

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  • Alberto A. Gaggero
  • David Bartolini

Abstract

In this paper we conduct an empirical investigation of the determinants of airline alliances. The results of the analysis show that well-established airlines with large passenger volume are more likely to participate in an alliance, and are essential for its sustainability. In line with these findings, older airlines have a higher probability of being part of an alliance. Moreover, the decision to join or form an alliance is fostered by the aggregate market share of the alliances. Interestingly, our analysis suggests that the airline's main decision is not to choose a specific alliance, but whether to join or form an alliance at all. © 2012 LSE and the University of Bath

Suggested Citation

  • Alberto A. Gaggero & David Bartolini, 2012. "The Determinants of Airline Alliances," Journal of Transport Economics and Policy, University of Bath, vol. 46(3), pages 399-414, September.
  • Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:3:p:399-414
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    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. Alderighi, Marco & Gaggero, Alberto A., 2014. "The effects of global alliances on international flight frequencies: Some evidence from Italy," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 30-33.
    3. Marco Alderighi, 2013. "Air accessibility and the export of Italian manufacture in Europe: Evidence at regional level," ERSA conference papers ersa13p1304, European Regional Science Association.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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