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Author: Mark A. Israel
Publisher:
ISBN:
Category :
Languages : en
Pages : 60
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Book Description
This paper analyzes the impact of varying degrees of airline cooperation on nonstop and connecting international traffic, using a detailed dataset of international travel between the United States and other countries for the years 1998 to 2015. We demonstrate that cooperation by airlines -- most notably, the formation of “metal neutral” joint ventures, along with grants of antitrust immunity (ATI) more generally -- generates substantial consumer benefits. Specifically, for connecting passengers, we find that ATIs generate fare reductions (relative to interline or simple codeshare itineraries), although these reductions are not significantly larger than those generated by airline alliances without immunity, while JVs lead to substantially larger fare reductions of around eight percent, nearly identical to the reductions associated with “online” travel with a single airline. For nonstop passengers, we find that ATI and JV cooperation between airlines does not, in general, generate higher nonstop fares on “overlap” routes where competing airlines are part of an ATI or JV. Finally, we find that ATIs and JVs are associated with increased segment traffic and net entry on existing and new routes. This expansion of output rounds out our results, demonstrating that, on the whole, ATI grants -- particularly when coupled with the formation of JVs -- have been strongly pro-competitive, generating lower fares on connecting routes and increased traffic on segments served by multiple alliance partners, with no associated increase in nonstop fares where partner airlines overlap.
Author: Mark A. Israel
Publisher:
ISBN:
Category :
Languages : en
Pages : 60
Get Book Here
Book Description
This paper analyzes the impact of varying degrees of airline cooperation on nonstop and connecting international traffic, using a detailed dataset of international travel between the United States and other countries for the years 1998 to 2015. We demonstrate that cooperation by airlines -- most notably, the formation of “metal neutral” joint ventures, along with grants of antitrust immunity (ATI) more generally -- generates substantial consumer benefits. Specifically, for connecting passengers, we find that ATIs generate fare reductions (relative to interline or simple codeshare itineraries), although these reductions are not significantly larger than those generated by airline alliances without immunity, while JVs lead to substantially larger fare reductions of around eight percent, nearly identical to the reductions associated with “online” travel with a single airline. For nonstop passengers, we find that ATI and JV cooperation between airlines does not, in general, generate higher nonstop fares on “overlap” routes where competing airlines are part of an ATI or JV. Finally, we find that ATIs and JVs are associated with increased segment traffic and net entry on existing and new routes. This expansion of output rounds out our results, demonstrating that, on the whole, ATI grants -- particularly when coupled with the formation of JVs -- have been strongly pro-competitive, generating lower fares on connecting routes and increased traffic on segments served by multiple alliance partners, with no associated increase in nonstop fares where partner airlines overlap.
Author: Ben Derudder
Publisher: Routledge
ISBN: 1317114361
Category : Political Science
Languages : en
Pages : 274
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Book Description
Business travel has become indispensable to the global economy, not only due to its necessity in the maintaining of corporate networks, but also because of the associated economies that cater to the daily requirements of the business traveller. Underlying these developments are concerns over the environmental impact of increasing air travel, which are likely to generate new challenges for the future of business travel. From a team of international experts comes this analysis of the role, nature and effects of modern business travel. Issues addressed include the relationships between airlines and business travellers, the role of mobility in business, and the opportunities and challenges created by mobile workforces. The study combines theoretical advances with comprehensive analysis, and will provoke debate across the social sciences on the nature, organization and space of work in the twenty-first century.
Author: Sumner J. La Croix
Publisher: DIANE Publishing
ISBN: 0788126210
Category : Airlines
Languages : en
Pages : 44
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Book Description
Includes: The Ascent of Asian Airlines (losses, cost-cutting, & consolidation in the global industry; entry, expansion, & profits in Asia); Bilateral Relations (5th freedom rights; 5th freedom rights & the U.S.-Japan Aviation Treaty; the future of bilateral agreements in Asia); Moving Beyond the Bilateral Regime (U.S. & Asian views on aviation liberalization; Asia-Pacific Economic Cooperation (APEC) & civil aviation; from restricted bilateral to open skies arrangement; & Asia-Pacific aviation & the WTO). Photos.
Author: Anne Graham
Publisher: Routledge
ISBN: 1317176766
Category : Business & Economics
Languages : en
Pages : 481
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Book Description
Transport is an essential element of tourism, providing the vital link between the tourist generating areas and destinations. Good accessibility, which is determined by the transport services provided, is a fundamental condition for the development of any tourist destination. Moreover the transport industry can be a major beneficiary of tourism because of the additional passenger demand that may be generated. Aviation is an increasingly important mode of transport for tourism markets. Whilst geography has meant that, in modern times, air travel has always been the dominant mode for long distance travel and much international tourism, moves towards deregulation, and in particular the emergence of the low cost carrier sector, have also increased aviation's significance for short and medium haul tourism trips. Thus developments in aviation can have very major implications for many leisure and business tourism markets. However the characteristics and needs of leisure travellers are generally so very different from business travellers that this necessitates a separate consideration of these markets if a detailed understanding of the relationship with aviation is to be gained. In spite of the obvious closeness between the aviation and tourism industries, there are very few specialist texts on this subject. Most tourism focused books consider aviation as just one component of the tourism industry which needs to be discussed, whereas aviation specialist texts rarely concentrate on just leisure travel. In addition there is very little literature that gives a detailed appreciation of the complexities and potential conflicts associated with the development of coherent and effective aviation and tourism policies. Therefore it is the aim of this book to fill this important gap which exists with a comprehensive, in-depth study of the relationship between aviation and leisure travel. The book deals exclusively with issues related to the relationship between aviation and leisure travel. It does this with an analysis of the theoretical concepts relevant to the subject area combined with a detailed investigation of current practice within the aviation and tourism industries. Each chapter is illustrated with case study material that will reinforce the understanding of the issues that are being examined.
Author: Leon E. Pennington
Publisher:
ISBN:
Category : Airlines
Languages : en
Pages : 246
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Book Description
"This paper began with a brief history of the development of the airplane and the airline industry in the United States and Europe. Use of aircraft for mail delivery and passenger travel was discussed as well as political environments and stages of development which led to the emergence of airlines themselves. As airlines developed and international travel became common, international political considerations of this activity were examined. This activity impacted the development of use of strategic alliances in the airline industry. Market-based economics were discussed, and the permitted level of cooperative effort among the airlines was examined from a historical and current point of view. To determine the impact of strategic alliances in the air transport industry, a detailed examination of the structure and operational aspects of two member airlines in a newly formed alliance was conducted using historical and current information from industry sources in English and French. Each member airline, Delta Air Lines, and Air France, was examined with comparative reasoning in order to evaluate their operations in a standardized fashion. The analysis chapter, an evaluation of the effectiveness of the strategic alliances the member airlines had formed, was conducted using objective, industry-wide criteria. This analysis led to a conclusion that strategic alliances in the air transport industry are beneficial and essential to provide an Anywhere to Everywhere service to customers."--Abstract
Author: Hendrik Vedder
Publisher: GRIN Verlag
ISBN: 364023037X
Category : Business & Economics
Languages : en
Pages : 78
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Book Description
Bachelor Thesis from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: 1,9, European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Chair of Strategic Aviation Management), course: Bacheloarbeit, language: English, abstract: "Companies are just beginning to learn what nations have always known: in a complex, uncertain world filled with dangerous opponents, it is best not to go it alone" (Ohmae, 1989, p. 143). This statement emphasises the significant developments in firms' corporate strategy in the 1980s. As a response to the rise of globalisation, and thus, increased competition, companies throughout the world started collaborating with partners with interfirm cooperation. Their cooperative practices, though, were not equally relevant in all branches, but concentrated mainly on industries that were affected most by the in-creasing environmental dynamic and complexity. Therefore, firms in various industries, such as the automotive or telecommunication industry, established alliances with their competitors in order to stay competitive and to jointly expand into world markets. However, the aviation industry, in particular, has experienced downright alliance frenzy since that time. With the gradual liberalisation of international air transport, collabora-tions between carriers have steadily gained importance. Therefore, airline alliances have developed from purely horizontal links into more complex and integrated strategic alliances. These strategic alliances have been established mainly to bypass existing regula-tory restrictions and to adapt to customers' altered preferences by extending the airlines' networks. However, with the incidents that occurred during the first years of the 21st century, such as the terrorist acts of 9/11, partner airlines were forced to react to the changed external conditions. This development highlights the high dependence of air-lines and their strateg
Author: Tyson Thomas
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This dissertation seeks to answer questions regarding changes in the competitive environment in international air travel markets which has undergone rapid changes since the early 1990s. Specifically, the research in this dissertation examines policies regarding cooperation among airlines in international air travel markets as well as how cooperation affects an airline's product quality. These issues are explored in two essays which comprise my dissertation. The first essay explores the efficacy of a policy known as a carve-out. Airlines wanting to cooperatively set prices for their international air travel service must apply to the relevant authorities for antitrust immunity (ATI). While cooperation may yield benefits, it can also have anti-competitive effects in markets where partners competed prior to receiving ATI. A carve-out policy forbids ATI partners from cooperating in markets policymakers believe will be most harmed by anti-competitive effects. We examine carve-out policy applications to three ATI partner pairings, and find evidence of tacit collusion in carve-out markets in spite of the policy, calling into question whether consumers benefited from application of the policy in the cases studied. The second essay examines the relationship between product quality and airline cooperation. Much of the literature on airline cooperation focuses on the price effects of cooperation. The key contribution of our paper is to empirically examine the product quality effects of airline cooperation. Two common types of cooperation among airlines involve international alliances and antitrust immunity (ATI), where ATI allows for more extensive cooperation. The results suggest that increases in the membership of a carrier's alliance or ATI partners are associated with the carrier's own products having more travel-convenient routing quality. Therefore, a complete welfare evaluation of airline cooperation must account for both price and product quality effects.
Author: M.R. Dileep
Publisher: Routledge
ISBN: 1000451240
Category : Business & Economics
Languages : en
Pages : 566
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Book Description
Air Transport and Tourism: Interrelationship, Operations and Strategies is a comprehensive textbook covering all major aspects of air transport from operational and managerial perspectives, as well as exploring the intricate relationship that exists between the air transport and tourism industries. The book introduces and provides in-depth coverage of the complexities of the airline industry and the tourism industry and the ways in which they are connected and impact on each other, for example, the destination–airport–airline nexus, and the roles of air transport and airlines in tourism and vice versa. Emphasis is placed on current and future trends, the impact of COVID-19, sustainability and environmental challenges throughout. Comprehensive coverage of airline operations, strategic management and planning, airport operations and air transport information technology is also provided, offering a practical viewpoint on these vital aspects of the subject. This will be the ideal introductory textbook for students of tourism and hospitality studying courses in aviation and air travel.
Author: Katarzyna Szydlowska
Publisher: GRIN Verlag
ISBN: 3668690073
Category : Business & Economics
Languages : en
Pages : 21
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Book Description
Research Paper (undergraduate) from the year 2017 in the subject Business economics - Business Management, Corporate Governance, grade: 2.1, Cardiff Metropolitan University, language: English, abstract: The purpose of this paper is to answer three questions of the case study. The text is strictly associated with the prosperity of alliances; therefore the term “strategic alliance” will be explained in the first instance. Furthermore, the business tool such as PESTLE, which is utilized to analyse the airline environment will be highlighted. It will be proven that the airlines prosperity strictly depends on political, legal, economic, social, technological and environmental factors. In addition, the alternative strategy for airlines such as mergers will be introduced. The examples of the airline mergers such as Delta-Northwest and Air France-KLM will be emphasized. Finally, the shared management, which is applied by Star Alliance, will be critically evaluated.
Author: DIANE Publishing Company
Publisher: DIANE Publishing
ISBN: 0788134388
Category :
Languages : en
Pages : 71
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Book Description
Between 1987 and 1993, the number of passengers traveling on U.S. airlines between the U.S. and foreign destinations increased 47%, while domestic traffic increased by only 6%. The airlines have entered into alliances with foreign airlines rather than starting new service to additional foreign cities. This report examines the effects of marketing alliances between U.S. and foreign airlines on airlines' traffic flows and revenues and on consumers, and identifies the key issues concerning such alliances that need to be addressed by the Dept. of Transportation.
