The effect of low fare air carriers on airfares in the US

Vowles, Timothy M.

doi:10.1016/s0966-6923(99)00033-2

Cited by 45 publications

(32 citation statements)

References 7 publications

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“…Tretheway and Kincaid (2005) claimed that the presence of low-cost carriers could have such an effect, which had been confirmed by numerous empirical studies including Bennett and Craun (1993), Dresner et al (1996), Morrison (2001) and Vowles (2000Vowles ( , 2006.…”

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confidence: 89%

“…A large body of literature has employed fare equations to examine pricing determinants, with many different purposes in mind. For example, research has variously focused on the effects of concentration (Borenstein 1989(Borenstein , 1992Kim and Singal 1993;Leahy 1994); the effects of airline hub-and-spoke networks (Brueckner et al 1992); the effects of the presence of low-cost carriers (Strassmann 1990;Vowles 2000); and the effects of airline alliances (Park and Zhang 2000;Brueckner and Whalen 2000;Brueckner 2003). …”

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confidence: 99%

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Policy Implications of the Effects of Concentration and Multimarket Contact in China’s Airline Market

Zhang

Round

2009

Rev Ind Organ

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Unlike many other mergers in developed countries, which might have been assessed and their effects estimated by antitrust authorities before being granted antitrust immunity, the airline mergers that swept China's airline industry in 2002 occurred with no antitrust challenge. These mergers provide the opportunity to study important market power issues in China's airline markets. Given that increased concentration and multimarket contact are the main legacies of an airline merger, the effects of mergers on these variables can raise the potential for the exercise of market power. However, an examination of the period [2002][2003][2004] during which the Chinese airline mergers occurred shows that the resulting increased concentration and enhanced multimarket contact did not have important consequences for airfares in Chinese city-pair markets. The presence of Hainan Airlines appears to have played an important role in suppressing the airfares charged by China Eastern and China Southern.

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confidence: 89%

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confidence: 99%

Policy Implications of the Effects of Concentration and Multimarket Contact in China’s Airline Market

Zhang

Round

2009

Rev Ind Organ

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“…Authors such as Borenstein (1989), Bauer and Zlatoper (1989), Morrison and Winston (1995), Dresner (1993, 1999), Dresner et al (1996) and Vowles (2000) use econometric models to determine some of the overall determinants of airfare pricing. Determinants found to be significant included hub dominance, number of carriers in the market, low fare carrier presence, and market share.…”

Section: Literature Reviewmentioning

confidence: 99%

Airfare pricing determinants in hub-to-hub markets

Vowles

2006

Journal of Transport Geography

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“…Morrison and Winston (1996) empirically showed that Southwest Airlines forces its competitors to reduce their fares. 2 Dresner et al (1996) and Morrison (2001) have measured the airfare-reduction effect of LCC entry in Vowles (2000) empirically analyzed the U.S. domestic air markets that include a number of LCCs and found that Southwest Airlines, other LCCs, and the market share of LCCs had statistically significant effects on the decrease in carriers' airfares. Alderighi et al (2004) estimated the price equations derived from oligopoly theories and found that competition between European LCCs and FSAs reduced all classes of FSAs' airfares.…”

Section: Literature Reviewmentioning

confidence: 99%