New data on air fares offered on 29 trans-Tasman and domestic New Zealand routes are analysed to test whether competition between traditional or legacy airlines still matters for pricing in the new air travel regime characterised by internet booking systems and competition from low cost...

The passenger air travel market has recently been impacted by two major innovations: first, in the 1990s, the rise of “low-cost carrier” (LCC) airlines offering cheap one-way point-to-point tickets, and then, in the new millennium, the emergence and enthusiastic adoption by consumers of...