ALLIANCES, CODESHARING, ANTITRUST IMMUNITY, AND INTERNATIONAL AIRFARES: DO PREVIOUS PATTERNS PERSIST?

Jan K. Brueckner · Ethan Singer

59 citations0/0 files storedJournal of Competition Law & Economics

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Aviation Industry Analysis and Trends Merger and Competition Analysis Transport and Economic Policies

Abstract

This paper revisits the effect of airline cooperation on international airfares, using a panel data set from 1998 to 2009. The findings mostly confirm previous results, showing that full airline cooperation lowers the fares paid by interline passengers, and that incremental improvements to cooperation individually lead to fare reductions. The results, which show that codesharing, alliance service, and antitrust immunity each separately reduces fares below the traditional interline level, overturn contrary and counterintuitive findings in recent U.S. Department of Justice (DOJ) studies. The findings thus buttress the consumer-benefit arguments used in many past antitrust-immunity cases, which were called into question by the DOJ studies.

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References

2001The economics of international codesharing: an analysis of airline alliances 2000The Price Effects of International Airline Alliances 1997The effects of airline alliances on markets and economic welfare 2003International Airfares in the Age of Alliances: The Effects of Codesharing and Antitrust Immunity 2001An Empirical Investigation of the Competitive Effects of Domestic Airline Alliances 2000An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets 2007Domestic Code Sharing, Alliances, and Airfares in the U.S. Airline Industry 2007A panel data analysis of code-sharing, antitrust immunity, and open skies treaties in international aviation markets

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