An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets

An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets This paper empirically investigatesthe effects on air fares, passenger volume, andconsumer surplus of four major alliances in NorthAtlantic aviation markets. The four alliances areBritish Airways/USAir, Delta/Sabena/Swissair,KLM/Northwest, and Lufthansa/United Airlines. We findthat equilibrium passenger volume increased by some36,000 passengers annually and equilibrium air faresdecreased by an average of $41 on the routes servedby the allying carriers, and that consumers weregenerally better off due to the alliances. Review of Industrial Organization Springer Journals

An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets

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Kluwer Academic Publishers
Copyright © 2000 by Kluwer Academic Publishers
Economics; Industrial Organization; Microeconomics
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