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The effect of code-share agreements on the temporal profile of airline fares

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  • Marco Alderighi

    () (Università della Valle d’Aosta, The Rimini Centre for Economic Analysis, Italy)

  • Alberto A. Gaggero

    () (Department of Economics and Management, University of Pavia, Italy)

  • Claudio A. Piga

    () (Keele Management School, United Kingdom, The Rimini Centre for Economic Analysis, Italy)

Abstract

This paper aims at investigating how the pricing strategy of European airline carriers is affected by code-share agreements on international routes. Our data cover several routes linking the main UK airports to largest European destinations and includes posted fares collected at different days before departure. By analyzing the temporal profile of airline fares, we identify three main results. First, code-share increases fares especially for early bookers. Second, the higher prices in code-shared flights are offered by marketing carriers. Finally, when flights are in unilateral code-share, the pricing profile is flatter than under parallel code-share.

Suggested Citation

  • Marco Alderighi & Alberto A. Gaggero & Claudio A. Piga, 2014. "The effect of code-share agreements on the temporal profile of airline fares," Working Paper series 27_14, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:27_14
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    References listed on IDEAS

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    Cited by:

    1. Yang, Chih-Wen, 2016. "Entry effect of low-cost carriers on airport-pairs demand model using market concentration approach," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 291-297.
    2. repec:eee:transa:v:112:y:2018:i:c:p:60-70 is not listed on IDEAS
    3. repec:eee:jaitra:v:67:y:2018:i:c:p:134-145 is not listed on IDEAS
    4. Yimga, Jules O., 2017. "Airline code-sharing and its effects on on-time performance," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 76-90.
    5. Varella, Rafael R. & Frazão, Jessica & Oliveira, Alessandro V.M., 2017. "Dynamic pricing and market segmentation responses to low-cost carrier entry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 151-170.
    6. Rolim, Paula S.W. & Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Estimating the impact of airport privatization on airline demand: AÂ regression-based event study," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 31-41.

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