The demand for air transport is largely determined by the spending capacity of customers. This paper aims to offer more insight into the determinants of price elasticities in the aviation sector. It seeks to identify both common and contrasting factors that influence the price elasticities, on...

Low frequencies of aircraft may have substantial negative effects on scheduling costs and waiting costs at hub airports. Appropriate timetabling of carriers will reduce these costs. In this paper we propose a measure for the quality of the co-ordination of timetables by carriers in hub airports....

Low-cost carriers like easyJet, Buzz and Ryanair use catching slogans highlighting their sometimes very low fares to attract passengers. This paper analyses pricing behaviour in the London–Paris market where low-cost carriers and conventional carriers are active. The central question is...

This paper reviews the problem of environmental externalities in air transportation. Several types of externalities in aviation are discussed and their empirical relevance is assessed. Next, it is argued that economic evaluation of environmental effects is essential in order to arrive at an...

The paper identifies conditions under which asymmetric equilibria may exist when carriers compete in designing their network configurations in a game-theoretical framework. Two carriers are assumed here, which are allowed to play three different strategies: point-to-point (PP), hub-and-spoke...

Markets in civil aviation are characterized by large differences in the level of competition, both between time periods as between regions. To measure competition, several indicators are available, such as the number of competitors, the C4-index and the Herfindahl index. We use these measures in...

Placing a monetary value on aircraft noise is necessary in order to assess the social cost inflicted by aviation. This need has given rise to a considerable amount of hedonic price (HP) studies on the relation between property values and aircraft noise, both published and unpublished. The...

This paper explores the effects of a European airline merger followed by a consolidation of two competing international alliances. The exercise has been inspired by the Air France–KLM merger, which is expected to spur consolidation of the Northwest–KLM and SkyTeam alliances into a...

In 2008 the ‘joint open aviation area’ between the US and EU will become reality. It is expected that competition will increase. The reaction of the airlines depends on the possibility to make profits in ‘new’ markets (markets that can now be entered). This, in turn,...

A recent trend in aviation markets is the emergence of airline alliances. One could argue that the emergence of alliances is a continuation of the process of concentration and consolidation that was first characterized by the emergence of hub-and-spoke networks. The international aviation market...