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Does Airline Competition Work In Short-Haul Markets?

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  • Xavier Fageda

Abstract

In this paper, we analyze how an airline can take advantage of airport dominance of a whole network in a market characterized by short-haul routes and congestion. In order to tackle this issue, we estimate an equation system, which is based on theoretical grounds, for the Spanish domestic market. We find that costs and demand benefits of airport dominance have to do with providing a high flight frequency. Such benefits can damage seriously the effectiveness of competition as long as the competitive status of major airline’s rivals is threatened.

Suggested Citation

  • Xavier Fageda, 2005. "Does Airline Competition Work In Short-Haul Markets?," Industrial Organization 0511010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0511010
    Note: Type of Document - pdf; pages: 31
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    References listed on IDEAS

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    2. Hurdle, Gloria J, et al, 1989. "Concentration, Potential Entry, and Performance in the Airline Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 119-139, December.
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    • L - Industrial Organization

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