This paper analyses the unit cost effects of mergers and acquisitions (M&As) using linear, quadratic, and translog cost functions. In addition to a basic unit cost model we specify separate models for distress, profit, relative size, and cost difference, among the merging firms. We use a sample...

The airline industry has recently experienced a fast move toward the hybridization of airline business models. This has remarkably affected airline network structures, moving from a neat contraposition between hub-and-spoke (typical of full-service carriers) and point-to-point networks (typical...