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Arab Passengers' Airlines Framework And Performance: A Cross Countries Analysis

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Listed:
  • BRAHIM ELMORCHID

    () (University of Marrakech, Morocco)

  • NOHA SAMY

    () (University of Cairo, Egypt)

  • KHALID SEKKAT

    () (University of Brussels and ERF, Belgium)

  • JAY SQUALLI

    () (American University of Sharjah, United Arab Emirates)

Abstract

Since the early 1980s, the international market of airline passengers is witnessing major turbulences. While in the USA, the EU or the ASEAN different strategies have been adopted to face the new situation, Arab countries show no clear strategy. Given the importance of this market for labor and nonlabor mobility in the Region, this paper investigates the impact of further liberalization on passengers and on welfare. To this end, an Indicator of Openness was computed and incorporated into an econometric model. The results show that increased competition decreases fares as well as carriers' revenue but increases consumer surplus. The computed net effect on society welfare is positive.

Suggested Citation

  • Brahim Elmorchid & Noha Samy & Khalid Sekkat & Jay Squalli, 2013. "Arab Passengers' Airlines Framework And Performance: A Cross Countries Analysis," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-21.
  • Handle: RePEc:wsi:medjxx:v:05:y:2013:i:02:n:s1793812013500107
    DOI: 10.1142/S1793812013500107
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    References listed on IDEAS

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    1. Olivier Boylaud & Giuseppe Nicoletti, 2003. "Regulation, market structure and performance in telecommunications," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 99-142.
    2. Touhami Abdelkhalek & Ejjanoui, 2010. "Approche Multidimensionnelle de la Pauvreté: Présentation Théorique et Application au cas de la Ville de Marrakech," Working Papers 513, Economic Research Forum, revised 04 Jan 2010.
    3. Zhang, Anming & Zhang, Yimin, 2006. "Rivalry between strategic alliances," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 287-301, March.
    4. Rauf Gönenç & Giuseppe Nicoletti, 2003. "Regulation, market structure and performance in air passenger transportation," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 183-227.
    5. Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
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    Keywords

    Arab airlines; competition; welfare;

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