Over the past decades multilateral alliances have blurred the borders between airline companies around the world. A multilateral alliance constitutes a group of companies having formal alliance relations with some central organization and common processes. In this chapter multilateral airline...

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...