Complementary Versus Semi-Complementary Airline Partnerships

As low-cost airlines or carriers excluded from international markets by regulation may seek to expand internationally in an indirect way through code-sharing agreements, they can choose partner airlines from among domestic or international carriers. The former case results in a semi-complementary partnership, while in the latter a classic complementary alliance is formed. This paper compares welfare properties of the two types of partnerships under economies of traffic density. Semi-complementary partnerships yield higher total welfare (but not necessarily lower prices) when economies of traffic density are strong, demand is more price-sensitive, or where a carrier feeding domestic traffic to international routes is a lower cost one.

• Record URL:
  • http://www.sciencedirect.com/science/article/B6V99-4KMYKWK-1/2/e8640f98b2a0b2664d66ca28b73b09a0
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier
• Authors:
  • Bilotkach, Volodymyr
• Publication Date: 2007

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 381-393
• Serial:
  • Transportation Research Part B: Methodological
  • Volume: 41B
  • Issue Number: 4
  • Publisher: Elsevier
  • ISSN: 0191-2615
  • Serial URL: http://www.sciencedirect.com/science/journal/01912615

Subject/Index Terms

• TRT Terms: Airlines; Code sharing; International trade; Intra airport transportation; Low cost carriers; Markets; Partnerships; Prices; Regulation; Sensitivity analysis; Strategic alliances; Traffic density; Travel demand; Welfare economics
• Subject Areas: Aviation; Economics;

Filing Info

• Accession Number: 01045273
• Record Type: Publication
• Files: TRIS
• Created Date: Mar 30 2007 7:03AM