The effects of global alliances on international flight frequencies: Some evidence from Italy

We collect half-yearly data on nonstop flight frequencies offered by carriers on routes originating from Italian regions to European countries in the period 1998–2010. We find that, as the share of flights belonging to global alliances increases, the number of flights offered by airlines simultaneously expands, especially in the case of full-service carriers. Moreover, there is also evidence that the number of global alliances has a positive impact on flight supply.

[1]  Philip K. Verleger join,et al.  Models of the Demand for Air Transportation , 1972 .

[2]  Jan K. Brueckner,et al.  Network Structure and Airline Scheduling , 2004 .

[3]  Volodymyr Bilotkach,et al.  Price Competition between International Airline Alliances , 2004 .

[4]  Alberto A. Gaggero,et al.  The determinants of airline alliances , 2012 .

[5]  Christopher F. Goetz,et al.  Strategic alliance as a response to the threat of entry: Evidence from airline codesharing , 2012 .

[6]  J. Brueckner,et al.  Carve-Outs Under Airline Antitrust Immunity , 2009, SSRN Electronic Journal.

[7]  Neil F. Riley,et al.  AIRPORT SUBSTITUTION IN A SHORT HAUL MODEL OF AIR TRANSPORTATION. , 1993 .

[8]  Yongmin Chen,et al.  Vertical contracting between airlines: An equilibrium analysis of codeshare alliances , 2007 .

[9]  Karl Morasch Strategic alliances as Stackelberg cartels – concept and equilibrium alliance structure , 2000 .

[10]  Jan K. Brueckner,et al.  The Price Effects of International Airline Alliances* , 2000, The Journal of Law and Economics.

[11]  J. Poot,et al.  Migration, Relationship Capital and International Travel: Theory and Evidence , 2010 .

[12]  Jeffrey M. Wooldridge,et al.  Solutions Manual and Supplementary Materials for Econometric Analysis of Cross Section and Panel Data , 2003 .

[13]  Jong-Hun Park,et al.  The effects of airline alliances on markets and economic welfare , 1997 .

[14]  Darin Lee,et al.  Domestic Code Sharing, Alliances, and Airfares in the U.S. Airline Industry , 2007, The Journal of Law and Economics.

[15]  Franz Rothlauf,et al.  Gravity models for airline passenger volume estimation , 2007 .

[16]  V. Bilotkach,et al.  Antitrust immunity for airline alliances , 2011 .

[17]  J. D. Jorge-Calderón A DEMAND MODEL FOR SCHEDULED AIRLINE SERVICES ON INTERNATIONAL EUROPEAN ROUTES , 1997 .

[18]  Stephen Nickell,et al.  Biases in Dynamic Models with Fixed Effects , 1981 .

[19]  Jan K. Brueckner,et al.  The economics of international codesharing: an analysis of airline alliances , 2001 .

[20]  Volodymyr Bilotkach,et al.  Airline alliances and antitrust policy: The role of efficiencies , 2012 .

[21]  R. Flores-Fillol Airline alliances: parallel or complementary? , 2009 .

[22]  H. Varian Price Discrimination and Social Welfare , 1985 .

[23]  Jong-Hun Park,et al.  Analytical models of international alliances in the airline industry , 2001 .

[24]  A. Zhang,et al.  AIRLINE ALLIANCES AND PARTNER FIRMS' OUTPUTS , 1998 .

[25]  Jan K. Brueckner,et al.  International Airfares in the Age of Alliances: The Effect of Codesharing and Antitrust Immunity , 2001 .

[26]  Anming Zhang,et al.  Rivalry between strategic alliances , 2006 .