Authors: Wang, Zhi H.; Evans, Michael; Turner, Lindsay

Source: Tourism Economics, Volume 10, Number 1, 1 March 2004 , pp. 23-43(21)

Publisher: IP Publishing Ltd

Abstract:

While alliances continue to be an important tool for airlines as they seek to expand their networks to compete more effectively with other larger networks, the effects of alliances and market liberalization on air transport market competition and airline performance have received relatively little attention. This research empirically investigates the effects of liberalization, and airline alliances, on airline competition. The analysis is based on 5,021 data sets focusing on 197 routes between the gateway cities of the major airlines' home countries. Findings show that airline passenger market share and route network share are significantly increased with increasing alliance activity. Also, airlines have a greater number of flights, passengers and passenger seats on routes for which they are involved in higher levels of cooperation and operate in more liberal markets. This suggests that multiple cooperation structures contribute more than bilateral airline service agreements to the overcoming of restrictive regulatory frameworks, enabling more effective competition.

Keywords: AIRLINE COMPETITION; AIRLINE ALLIANCES; LIBERALIZATION

Document Type: Regular paper

DOI: http://dx.doi.org/10.5367/000000004773166501

Publication date: 2004-03-01

More about this publication?

• Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).

• Subscribe to this Title
• ingentaconnect is not responsible for the content or availability of external websites

Related content

• In this: publication
• By this: publisher
• In this Subject: Geography
• By this author: Wang, Zhi H. ;  Evans, Michael ;  Turner, Lindsay

Website © Publishing Technology. Article copyright remains with the publisher, society or author(s) as specified within the article.

• Terms and conditions
• Privacy policy
• Information for advertisers