This article examines the extent to which innovations enhance airline value. For this purpose, we measure the effect that airline innovations have on its market value. An increase in the market value is significantly found when an airline announces an innovation. Not all innovative actions are...

This article assesses potential variations in the risk to an airline's market value resulting from incurring high investments in innovations. This can be important for airlines, whose large fixed costs and high operational leverage make their commercial viability heavily dependent on revenue...

The article tests for the existence of reference dependence, loss aversion and diminishing sensitivity in airline demand, in the context of price responsiveness amongst low cost, regular and charter airlines. We incorporate the reference-dependent model into a mixed model to control for...