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The Impact of an Old Fleet on the Demand for Air Transportation: The Case of VASP Brazilian Airlines

Listed author(s):
  • Bruno José Marques Pinto

    (Graduate School of Economics at Fundação Getulio Vargas - EPGE/FGV)

In 05/25/1982, the VASP aircraft broke in two after a hard landing killing 2 people. The pilot's misuse of rain repellant, caused an optical illusion leading to the hard landing. Since that day, VASP started to have constant problems. A brief history about VASP is discussed. After so many problems, VASP lost its market share and became the 4th airline of Brazil, VASP used to be second place. With financial problems, VASP could not buy new airplanes and its fleet was from the 70-80s. This paper aims to study if an old fleet could affect the demand for air transportation.

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Paper provided by EconWPA in its series Industrial Organization with number 0506005.

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Length: 6 pages
Date of creation: 09 Jun 2005
Handle: RePEc:wpa:wuwpio:0506005
Note: Type of Document - pdf; pages: 6
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  1. Anderson, James E & Kraus, Marvin, 1981. "Quality of Service and the Demand for Air Travel," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 533-540, November.
  2. Douglas, George W & Miller, James C, III, 1974. "Quality Competition, Industry Equilibrium, and Efficiency in the Price-Constrained Airline Market," American Economic Review, American Economic Association, vol. 64(4), pages 657-669, September.
  3. Reuben Gronau, 1970. "The Value of Time in Passenger Transportation: The Demand for Air Travel," NBER Books, National Bureau of Economic Research, Inc, number gron70-1, November.
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