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Regulation, Market Structure and Performance in Air Passenger Transportation

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  • Rauf Gönenç
  • Giuseppe Nicoletti

Abstract

The paper uses a data base on regulation, market structure and performance in the air passenger transportation industry, to analyse the links among liberalisation, private ownership, competition, efficiency and airfares at national and route levels. Covering the 1996-97 travel season, 21 aggregate indicators have been developed for 27 OECD countries, and 23 micro indicators for 102 air routes connecting 14 major international airports. These data, summarised by means of factor analysis show that i) regulations affecting the air industry vary heavily across countries and routes; ii) in most markets, air services are still provided by a few carriers, generally dominated by an incumbent flag-carrier or by an airline alliance between incumbents; iii) only in a few cases new entrant airlines play a significant role; iv) in a large number of airports, a single airline controls more than half of the available slots; v) as a result, few international routes are truly open to ... Cette étude utilise une base de données concernant la régulation, la structure des marchés et la performance dans le transport aérien de passagers, au niveau national ainsi qu’au niveau des lignes, pour analyser les liens entre d’une part la libéralisation, la privatisation et la concurrence et, d’autre part, l’efficacité de l’industrie et les tarifs des voyages aériens. Pour la saison 1996-97, il a été possible de développer 21 indicateurs agrégés pour 27 pays de l’OCDE et 23 indicateurs détaillés pour 102 lignes aériennes reliant 14 grands aéroports internationaux. Ces données, synthétisées à l’aide de l’analyse factorielle, montrent que i) la régulation de l’industrie du transport aérien varie remarquablement selon les pays et les lignes ; ii) dans la majorité des marchés, les services de transport aérien sont encore fournis par un nombre restreint de vecteurs, qui sont généralement dominés par une compagnie nationale présente depuis longtemps sur le marché ou par une alliance ...

Suggested Citation

  • Rauf Gönenç & Giuseppe Nicoletti, 2000. "Regulation, Market Structure and Performance in Air Passenger Transportation," OECD Economics Department Working Papers 254, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:254-en
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    File URL: http://dx.doi.org/10.1787/163610427241
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    Keywords

    air transport; business strategy; competition; concurrence; economics of regulation; entreprise publique; industrie réglementée; liberalisation; libéralisation; market structure; regulated industries; stratégie d'entreprise; structure de marché; transport aérien; économie de la régulation;

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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