This article investigates to what extent an airline's financial distress impacts its pricing behavior. While prior research suggests that, on average, distressed airlines sell at lower fares, it is hypothesized that the magnitude of this effect may depend on certain firm and market specific...

This study presents a time series examination of price premiums in the US airline industry. Price premiums are defined as price markups due to domination and concentration at the airport and route market levels. The differential effect of these price premium drivers is empirically investigated,...

The US–Canadian air traffic market is one of the largest international markets in the world – estimated at 23million passengers in 2008. The market is currently regulated by an “Open Skies” agreement, which eliminated all restrictions on the frequency of flights, the aircraft flown, and...

This paper undertakes two tasks: measurement of seaport infrastructure productivity growth in North America from 1984 to 1997, and exploration of several theorized causal relationships between infrastructure productivity and industry structure and conduct. A methodology is presented, data...

Recent research has found that the entrance of a low cost carrier leads to lower prices on routes it has entered. This paper extends this analysis by examining the impact of route entry by a discount carrier, ValuJet into an established carrier's hub, Delta, and by examining price changes on...

The paper assesses productivity of 56 US airports during the period 2000-2003. Unlike past work, this study models joint production of both desirable and undesirable outputs (i.e., delays) using the non-parametric directional output distance function. Results are compared to those from models...

Previous research has used reduced-form models to determine the impact of financial condition and safety investment on airline accident risk and has found limited statistical evidence. We model safety investment as a mediating variable between the financial health of an airline and its accident...

This study investigates to what extent cross-product (belly cargo) output affects (passenger ticket) prices in the US domestic airline industry. The empirical analysis indicates that greater cargo volumes generally result in lower air fares, presumably as a result of the airlines' realization of...

The establishment of private communities on Internet-based transportation networks is a relatively new trend that has met with mixed success. Within industry, there has been uncertainty over the costs and benefits of these communities to shippers and carriers. Through a theoretical model based...

The impact of airline alliances on airfares on nonstop hub-to-hub routes is investigated. Analytical results suggest that the net effect on airfares is uncertain. Empirical evidence shows that the impact of two of three alliances (Star and SkyTeam) on prices on transatlantic hub-to-hub routes is...