IDEAS home Printed from
   My bibliography  Save this paper

Hay competencia en el mercado europeo de transporte aereo?: el caso espanol


  • Xavier Fageda Sanjuan

    (Universitat de Barcelona)


The liberalisation of air transport that took place in the European Union at the beginning of the nineties has involved positive effects on the welfare traveller. However, there is an agreement in the academic literature that such effects depend on the existence of an effective competition at the level of the route. In this way, we deal with competition concerns referred to the scale advantages of major airlines in each domestic market. In addition to this, we try to capture product differentiation as one of the essential features of the airline industry. In order to achieve these goals, we firstly analyse the main economic aspects that determine competition in the airline industry. And secondly, we implement an empirical model based on a three equations system, which is estimated through the instrumental variables technique. The sample used includes most of routes of the Spanish domestic market of regular flights where competition does exist for 2001. Our results show the existence of different competition conditions according to the market segment in which airlines address their services. Indeed, price (quality) competition seems to be dominant in the segment of leisure (business) passengers. Furthermore, we also find that the major airlines dominance of the market relies on the competitive advantages in terms of cost and demand that provides the control of the Spanish airport network. We conclude that the maintenance and/or increase of the air liberalisation benefits require expanding liberalisation to airports space allocation and decentralising its management.

Suggested Citation

  • Xavier Fageda Sanjuan, 2003. "Hay competencia en el mercado europeo de transporte aereo?: el caso espanol," Working Papers in Economics 109, Universitat de Barcelona. Espai de Recerca en Economia.
  • Handle: RePEc:bar:bedcje:2003109

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bar:bedcje:2003109. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Espai de Recerca en Economia). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.