Regional air transportation: density economies and transaction costs

Transporte aéreo regional: entre economias de densidade e custos de transação

TAM Airlines bought Pantanal Regional Airlines in December 2009 and surprised a number of academics and industrial analysts. Although Pantanal Airlines was under financial, competitive, and regulatory pressure for a number of reasons in recent years (increasing difficulties for keeping its air operator’s certificate due to maintenance issues; entry episodes of rival airlines in once exclusive airports such as Bauru, Marília and Juíz de Fora; loss of 31% of its slots at São Paulo Congonhas airport due to schedule inefficiency) the end of its history was highly surprising, as it involved the return of TAM Airlines to a market segment from which it progressively stepped away for two decades. This paper explores and tries an interpretation on such story by using the concepts of economies of density and transaction costs.


  • English
  • Portuguese

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01493852
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 10 2013 1:35AM