Codeshare restrictions as antitrust remedy

To incentivize competitive conduct, the US Department of Justice restricted codesharing between Alaska Airlines and American Airlines in several route scenarios as a condition for allowing the former to acquire Virgin Airlines. Have these restrictions incentivized competitive conduct? This paper investigates their effects on output, price, and revenue in these route scenarios. Estimation results suggest that output and price have significantly decreased, particularly for routes between the airlines' hubs or focus cities, indicating that the restrictions have not incentivized competitive conduct. Rather, the decrease in both output and price suggests that consumers’ demand has decreased. Welfare for consumers and airlines has decreased.

• Record URL:
  • https://doi.org/10.1016/j.tranpol.2023.05.004
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0967070X23001270
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/29485010
• Supplemental Notes:
  • © 2023 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Le, Huubinh B
  • Yimga, Jules
  • 0000-0001-5424-616X
• Publication Date: 2023-7

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 17-24
• Serial:
  • Transport Policy
  • Volume: 138
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0967-070X
  • Serial URL: http://www.elsevier.com/locate/issn/096707X

Subject/Index Terms

• TRT Terms: Air routes; Civil aviation; Competition; Fares; Incentives
• Subject Areas: Administration and Management; Aviation; Economics; Finance;

Filing Info

• Accession Number: 01883551
• Record Type: Publication
• Files: TRIS
• Created Date: May 25 2023 5:41PM