A major carrier operates one hub linking multiple non-hub cities. It forms an alliance with a low cost carrier whose nonstop service competes with its one-stop service. The alliance's joint profit is maximized by withdrawing the competing one-stop (nonstop) service when the major carrier's...

This paper investigates should an airline offer vertically differentiated services, which are substitutes of its own services. The airline operates a certain number of direct flights to offer various types of services including nonstop, one-stop, or multiple-stop services. Homogenous passengers...

This article investigates airline pricing and airport congestion charges in hub-spoke networks. When a public hub airport and two public spoke (local) airports independently levy their charges, airlines will eventually set a ticket price that overcharges the passengers for congestion delay cost...