Arbeitspapier

The Entry of Low-Cost Airlines: Price Competition in the European Airline Market

This paper investigates the response of full service carriers (FSCs) to theentry of low-cost carriers (LCCs). We develop a model of airlinecompetition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British Airways, Alitalia and KLM for the main city-pairs fromItaly to the rest of Europe, our statistical modelling resu1ts confirm theconclusions of the theoretical model. Competition among FSCs appears toaffect the price levels of business and leisure segments asymmetrically. Incontrast, competition with LCCs reduces the fares of FSCs in all classesproportionally.

Sprache
Englisch

Erschienen in
Series: Tinbergen Institute Discussion Paper ; No. 04-074/3

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Information and Product Quality; Standardization and Compatibility
Air Transportation
Thema
Pricing strategies
yield management
low-cost carriers
European airline market
Luftverkehr
Markteintritt
Preiswettbewerb
Europa
Revenue-Management

Ereignis
Geistige Schöpfung
(wer)
Alderighi, Marco
Cento, Alessandro
Nijkamp, Peter
Rietveld, Piet
Ereignis
Veröffentlichung
(wer)
Tinbergen Institute
(wo)
Amsterdam and Rotterdam
(wann)
2004

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Alderighi, Marco
  • Cento, Alessandro
  • Nijkamp, Peter
  • Rietveld, Piet
  • Tinbergen Institute

Entstanden

  • 2004

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