THE EFFECTS OF CODESHARING AGREEMENTS ON INTERNATIONAL AIR FARES

Codesharing is a market arrangement between two airlines whereby one airline's designator code is shown on flights operated by its partner airline. Many articles concerning the effects of carrier alliances and, to a lesser extent, on codesharing have appeared in popular press (newspapers, airline industry magazines, etc.) However, the authors know of no studies that have systematically investigated the effects of airline codesharing on firm conduct and air fares. The main purpose of this paper is to fill the void in the literature by investigating the effects of codesharing on firm conduct and air fares in the context of oligopoly. The paper focuses on modeling the oligopolistic interaction between airlines on a route in order to measure the impacts of codesharing agreements between non-market leaders on the market leader's price and passenger volume. An analytical model of codesharing is developed and then applied to a panel of data of fifty-seven transpacific international air routes for the 1982-92 period.

Language

  • English

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Filing Info

  • Accession Number: 00797101
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 6 2000 12:00AM