Potere di mercato e distribuzione dei profitti nella filiera del trasporto aereo
[Market power and profits distribution in the air transportation vertical channel]
We analyze the air transportation vertical channel and show the existence of an asymmetric distribution of profit margins between airlines and the firms operating in upstream stages. Higher margins are observed for leasing companies, engine manufacturers and GDS, while airlines exhibit a very low profitability. Two factors may explain this asymmetry: (1) in some stages of the value chain some firms (e.g. airlines and handling companies) have a low countervailing power both when acting as a buyer and as a seller, and (2) the liberalization policy implemented in the air transport sector so far is incomplete. The latter has increased the intensity of competition in some stages (e.g. airlines and handling companies), but has not faced and reduced the market power in other ones. We can draw some policy implications from this analysis. First, horizontal mergers between airlines should be positively evaluated by competition authorities, since they increase the airlines countervailing power in the vertical channel and this may, in turn, bring about a price reduction for consumers. Second, the degree of vertical integration in some stages should be reduced, because it is likely to be an instrument for increasing the market power in upstream stages and not to reach a higher efficiency.
|Date of creation:||Apr 2010|
|Date of revision:|
|Publication status:||Published in Mercato Concorrenza Regole 1.2010(2010): pp. 173-210|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alamdari, Fariba & Mason, Keith, 2006. "The future of airline distribution," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 122-134.
- Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Inefficiencies and scale economies of European airport operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(5), pages 341-361, September.
- Brueckner, Jan K. & Pai, Vivek, 2009.
"Technological innovation in the airline industry: The impact of regional jets,"
International Journal of Industrial Organization,
Elsevier, vol. 27(1), pages 110-120, January.
- Jan K. Brueckner & Vivek Pai, 2007. "Technological Innovation in the Airline Industry: The Impact of Regional Jets," Working Papers 060720, University of California-Irvine, Department of Economics.
- Mark Armstrong, 2005.
"Competition in Two-Sided Markets,"
- Nina Pavcnik, 2002. "Trade Disputes in the Commercial Aircraft Industry," The World Economy, Wiley Blackwell, vol. 25(5), pages 733-751, 05.
- Douglas A. Irwin & Nina Pavcnik, 2001.
"Airbus versus Boeing Revisited: International Competition in the Aircraft Market,"
NBER Working Papers
8648, National Bureau of Economic Research, Inc.
- Irwin, Douglas A. & Pavcnik, Nina, 2004. "Airbus versus Boeing revisited: international competition in the aircraft market," Journal of International Economics, Elsevier, vol. 64(2), pages 223-245, December.
- Irwin, Douglas & Pavcnik, Nina, 2003. "Airbus versus Boeing Revisited: International Competition in the Aircraft Market," CEPR Discussion Papers 3876, C.E.P.R. Discussion Papers.
- Colombo Luca, 2001. "Determinazione dei diritti aeronautici e allocazione degli "slot" nell'industria aeroportuale," Politica economica, Società editrice il Mulino, issue 3, pages 317-358.
- Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
- Andrea Bonaccorsi & Paola Giuri, 2001. "Learning, technological competition and network structure in the aero-engine industry," LEM Papers Series 2001/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Jean-Charles Rochet & Jean Tirole, 2014.
"Platform Competition in Two-Sided Markets,"
Competition Policy International, vol. 10.
- Jean-Charles Rochet & Jean Triole, 2002. "Platform Competition in Two Sided Markets," FMG Discussion Papers dp409, Financial Markets Group.
- Rochet, Jean-Charles & Tirole, Jean, 2003. "Platform Competition in Two-Sided Markets," IDEI Working Papers 152, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jean-Charles Rochet & Jean Triole, 2002. "Platform competition in two sided markets," LSE Research Online Documents on Economics 24929, London School of Economics and Political Science, LSE Library.
- Oum, Tae Hoon & Fu, Xiaowen & Yu, Chunyan, 2005. "New evidences on airline efficiency and yields: a comparative analysis of major North American air carriers and its implications," Transport Policy, Elsevier, vol. 12(2), pages 153-164, March.
- Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2008.
"Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports,"
Journal of Urban Economics,
Elsevier, vol. 64(2), pages 422-435, September.
- Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2009. "Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports," 50th Annual Transportation Research Forum, Portland, Oregon, March 16-18, 2009 207604, Transportation Research Forum.
- Oum, Tae Hoon & Zhang, Anming & Zhang, Yimin, 2000. "Optimal demand for operating lease of aircraft," Transportation Research Part B: Methodological, Elsevier, vol. 34(1), pages 17-29, January.
- Soames, Trevor, 1997. "Ground handling liberalization," Journal of Air Transport Management, Elsevier, vol. 3(2), pages 83-94.
- Rampini Federico, 2000. "Un Airone non fa primavera," Mercato Concorrenza Regole, Società editrice il Mulino, issue 1, pages 79-84.
- Gillen, David & Lall, Ashish, 1997. "Developing measures of airport productivity and performance: an application of data envelopment analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 261-273, December.
- Paolo Malighetti & Gianmaria Martini & Stefano Paleari & Renato Redondi, 2007. "An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 157-188, January-F.
- Andrea Bonaccorsi & Paola Giuri & Francesca Pierotti, 2005. "Technological frontiers and competition in multi-technology sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 23-42.
- Piga Claudio & Polo Michele, 2003. "Il giro del mondo in 80 euro. Liberalizzazione e compagnie aeree a basso costo," Mercato Concorrenza Regole, Società editrice il Mulino, issue 2, pages 281-296.
- Barone Guglielmo & Bentivogli Chiara, 2006. "Il trasporto aereo in Italia: ancora un caso di liberalizzazione incompiuta?," Mercato Concorrenza Regole, Società editrice il Mulino, issue 1, pages 151-176.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24647. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.