Price Effects of Airline Consolidation Evidence from the Transatlantic Markets

V. Bilotkach (Ukraine)


Airline Alliances, Codesharing, Antitrust Immunity


This paper investigates price effects of airline consolidation on the transatlantic market. We study effects of codesharing, alliance membership, and antitrust immunity. Codesharing decreases interline fares by up to 22.5 percent. Alliance membership decreases fares by further 10 percent. Antitrust immunity has no significant price effect for interline trips. The total effect of airline consolidation on interline fares is about the same as in previous research, but its sources are different from those suggested previously.

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