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Antitrust immunity for airline alliances

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  • Bilotkach, Volodymyr
  • Hüschelrath, Kai

Abstract

The market developments in international air transportation have led to the dominance of three global airline alliances - Star, SkyTeam and oneworld. At the same time, members of these alliances receive increasingly more freedom in coordinating various aspects of joint operations, including scheduling and pricing decisions, as well as the right to form revenue-sharing joint ventures in international markets. Although the significant consumer benefits generated by airline cooperation are undisputed, the recent developments raise antitrust concerns. Against this background, the paper compares the key competitive effects of airline alliances and antitrust immunity with the economic lines of reasoning in recent policy actions to develop recommendations for a full-fledged assessment of antitrust immunity for airline alliances.

Suggested Citation

  • Bilotkach, Volodymyr & Hüschelrath, Kai, 2010. "Antitrust immunity for airline alliances," ZEW Discussion Papers 10-080, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:10080
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    Cited by:

    1. Chiambaretto, Paul & Decker, Christopher, 2012. "Air–rail intermodal agreements: Balancing the competition and environmental effects," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 36-40.
    2. Firgo, Matthias & Kügler, Agnes, 2014. "Detecting Collusion in Spatially Differentiated Markets," Department of Economics Working Paper Series 4347, WU Vienna University of Economics and Business.
    3. Volodymyr Bilotkach & Kai Hüschelrath, 2013. "Airline Alliances, Antitrust Immunity, and Market Foreclosure," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1368-1385, October.
    4. Gayle, Philip G. & Thomas, Tyson, 2016. "Assessing firm behavior in carve-out markets: Evidence on the impact of carve-out policy," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 178-194.
    5. Brouwer, E. & Ozbugday, F.C., 2011. "Competition Law, Antitrust Immunity and Profits : A Dynamic Panel Analysis," Discussion Paper 2011-038, Tilburg University, Center for Economic Research.
    6. Stephen Martin, 2012. "Market Structure and Market Performance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(2), pages 87-108, March.
    7. Víctor Valdés, 2013. "Fallas del mercado y del gobierno en el sector aeronáutico mexicano," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 15(29), pages 253-283, July-Dece.

    More about this item

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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