This paper investigates the effects of different forms of price regulation on airport efficiency. Our investigation takes into account the interaction between concession profits and price regulations. Our results show that while ROR regulation may lead to over-investment in capacity, price-cap...

In this paper, the effects of the strategic interaction between deregulated airlines on their network choice are analyzed. The authors examine whether switching from a linear to a hub-spoke network confers a strategic advantage because it saves costs and improves service quality. They find that,...

This paper deals with the socially optimal pricing of airports in a hub-and-spoke network, taking into account explicitly the fact that demands for airport services at hub airport and spoke airports are complementary. It is shown that a welfare gain is to be made by switching from the regime of...

Operating lease of the aircraft gives the airlines flexibility in capacity management. However, airlines pay a risk premium to the leasing companies for bearing part of the risks. Therefore, the airlines face a trade-off between flexibility of capacity and higher costs. This paper develops a...

This article investigates the measurement of returns to scale (RTS) via a cost function in the presence of quasi-fixed inputs. Caves, Christensen, and Swanson (CCS) proposed estimation of a variable-cost function and derived a formula for computing RTS from it. This article extends the CCS...

This study investigates the effect of competition on the productive efficiency of the U.S. telephone industry, taking into account the fact that the industry was subject to rate-of-return regulation. It is shown that competition induces the incumbents to use capital inputs closer to the...

This paper summarizes main research results concerning global airline alliances and investigates the potential roles of Air Canada and other Canadian air carriers in the increasingly powerful global alliance networks. After describing the history, status and prospect of global alliance networks,...