Regulation, policy-making, competitiveness and price formation: considerations for air transport in Brazil

Regulação, políticas setoriais, competitividade e formação de preços: considerações sobre o transporte aéreo no Brasil

This paper aims at discussing the relevance of domestic air transportation of passengers to the Brazilian economy. Firstly, the authors present some of the sector’s most important characteristics along with a description of the evolution of its governmental policies for the last thirty years. This analysis has the purpose of clarifying the main topics for the set-up of a regulatory mark of air transportation within the country. And secondly, the authors develop an empirical model of price formation by making use of recent data available from the sector and an econometric model. The empirical model allows answering a set of questions as the following: What is the influence of macroeconomic variables (GDP and exchange rate) on air fares? Is there a price differential caused by product differentiation? Are there economies of traffic density? Does pricing vary according to the region of the country? What is the influence of the presence of a low cost carrier? Do touristic factors have any influence on pricing? How do prices behave across a given year, that is, what is the influence of high and low seasons?

Language

  • English
  • Portuguese

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Filing Info

  • Accession Number: 01494624
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 22 2013 10:34PM