Airline competition in the British Isles

Alberto A. Gaggero, Claudio A. Piga

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

We study the relationship between pricing and market structure on the routes connecting the UK and the Republic of Ireland. Because in 2007 the European Commission prohibited the takeover of Aer Lingus by Ryanair, the analysis focuses on their pricing strategies in particular. We use an original dataset of fares posted on-line, which allows to control for the fares' inter-temporal pattern for each specific flight and each carrier's specific yield management system. Our evidence supports the European Commission's view that the elimination of a competitor in the Irish airline market is likely to have harmful consequences for consumers.

Original languageEnglish
Pages (from-to)270-279
Number of pages10
JournalTransportation Research Part E: Logistics and Transportation Review
Volume46
Issue number2
DOIs
Publication statusPublished - 1 Mar 2010
Externally publishedYes

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