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Airfares and Competition on International Routes

The Economics of International Airline Transport

ISBN: 978-1-78350-639-2

Publication date: 6 August 2014

Abstract

This chapter uses airline data on fares, traffic, and flight characteristics to estimate a series of fare equations for international flights. The results are used to examine the role of international competition as a determinant of fares along international flights originating or departing from the United States. Findings suggest that actual and potential competition are important determinants of international airfares. We interpret these results as indicating that pricing behavior along US–international routes is consistent with the theory of imperfect contestability.

Keywords

Citation

Bitzan, J., Kones, A. and Peoples, J. (2014), "Airfares and Competition on International Routes", The Economics of International Airline Transport (Advances in Airline Economics, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 151-176. https://doi.org/10.1108/S2212-160920140000004005

Publisher

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Emerald Group Publishing Limited

Copyright © 2014 Emerald Group Publishing Limited