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Airport privatization competition including domestic airline networks

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  • Akio Kawasaki

Abstract

This paper addresses the problem of hub airport privatization, similar to the studies by Matsumura and Matsushima (2012) and Mantin (2012). However, differentiating from their papers, this paper introduces a domestic airline network. That is, each country has one major hub airport and some local airports. The main result obtained in this paper is as follows. When at least one country has a small domestic airline network, the same result as that by Matsumura and Matsushima (2012) and Mantin (2012) is obtained. However, when both countries have a large domestic airline network, the public airport may be an equilibrium outcome. Furthermore, depending on the size of the airline network and the degree of airline competition, asymmetric equilibrium can also appear.

Suggested Citation

  • Akio Kawasaki, 2013. "Airport privatization competition including domestic airline networks," Working Papers e064, Tokyo Center for Economic Research.
    • Handle: RePEc:tcr:wpaper:e64
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    References listed on IDEAS

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    1. Brueckner, Jan K., 2005. "Internalization of airport congestion: A network analysis," International Journal of Industrial Organization, Elsevier, vol. 23(7-8), pages 599-614, September.
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    3. Mantin, Benny, 2012. "Airport complementarity: Private vs. government ownership and welfare gravitation," Transportation Research Part B: Methodological, Elsevier, vol. 46(3), pages 381-388.
    4. Akio Kawasaki & Ming Hsin Lin, 2013. "Airline Schedule Competition and the Entry Route Choices of Low-Cost Carriers," Australian Economic Papers, Wiley Blackwell, vol. 52(2), pages 97-114, June.
    5. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, corporatization, ownership forms and their effects on the performance of the world's major airports," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 109-121.
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    13. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, Corporatization, Ownership Forms and their Effects on the Performance of the World’s Major Airports," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208026, Transportation Research Forum.
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    Cited by:

    1. Lin, Ming Hsin & Mantin, Benny, 2015. "Airport privatization in international inter-hub and spoke networks," Economics of Transportation, Elsevier, vol. 4(4), pages 189-199.

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