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Airport Deregulation and Airline Competition

Author

Listed:
  • Jolian McHardy

    (Department of Economics, The University of Sheffield)

  • Steve Trotter

Abstract

Liberalisation has affected all parts of the air travel industry, with airports as well as airlines increasingly run on commercial lines. This paper models interactions between airports and airlines to show that, for example, the potential benefits to passengers of increased competition between airlines may be (more than) absorbed by the unregulated airports through which they travel, and that effecting airport competition in one country may lead to the majority of the gains going abroad. The policy conclusion is that the (de)regulation of airlines and associated services should be fully co-ordinated and internationally coherent.

Suggested Citation

  • Jolian McHardy & Steve Trotter, 2005. "Airport Deregulation and Airline Competition," Working Papers 2005003, The University of Sheffield, Department of Economics, revised Jan 2005.
    • Handle: RePEc:shf:wpaper:2005003
    as

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    File URL: http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005003.pdf
    File Function: First version, 2005
    Download Restriction: no
    File URL: http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005003.pdf
    File Function: Revised version, 2005
    Download Restriction: no
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    References listed on IDEAS

    as
    1. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 1997. "Substitution and complementarity in aviation: airports vs airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 275-286, December.
    2. Barrett, Sean D, 2000. "Airport competition in the deregulated European aviation market," Journal of Air Transport Management, Elsevier, vol. 6(1), pages 13-27.
    3. James A. Brander & Anming Zhang, 1990. "Market Conduct in the Airline Industry: An Empirical Investigation," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 567-583, Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Airports; airlines; competition; deregulation.;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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