Abstract Airline alliances are a global transportation issue which is the subject of increasing attention in the literature. A simple simulation model of air carrier competition in a network is constructed to examine the economic welfare effects of different levels of alliance between the carriers serving the network. The simulations confirm that consumers derive benefits from improved access to passenger markets. However, in many cases, carriers tend to gain from a limited alliance such as code-sharing. This suggests that closer alliances may be driven by other considerations such as raising barriers to entry or the cross-subsidisation of international routes through greater control of the domestic market.


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    Title :

    Open skies and open gates


    Contributors:

    Published in:

    Publication date :

    2001




    Type of media :

    Article (Journal)


    Type of material :

    Print


    Language :

    English



    Classification :

    BKL:    55.80 Verkehrswesen, Transportwesen: Allgemeines / 74.75 Verkehrsplanung, Verkehrspolitik
    Local classification TIB:    535/7000




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