THE IMPACT OF DISCOUNT AIRLINES ON DOMESTIC FARES IN CANADA

The oligopolistic tendencies of the airline industry are even more pronounced in Canada than in the U.S.; indeed, in the late 1990s, only 2 airlines--Air Canada and Canadian Airlines--account for about 80% of industry operating revenues according to the government ministry for transportation. In the face of such extreme market concentration, it might be expected that low-fare carriers would be especially important in suppressing fares of the major airlines. However, the impact of low-fare carriers in the Canadian context has not been tested empirically. The aim of this article is to determine whether the presence of a low-fare carrier on a domestic Canadian route suppresses the fares of the major airlines. Background material is first provided, followed by a regression analysis applied to data on 163 city-pairs within Canada to identify the effect, if any, of low-fare carriers on major airline fares. Lastly, the implications for public policy are briefly discussed.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1588960
• Corporate Authors:

  American Society of Transportation and Logistics

  229 Peachtree Street, NE, Suite 401
  Atlanta, GA  United States  30303-1600
• Authors:
  • Mentzer, M S
• Publication Date: 2000

Language

• English

Media Info

• Features: References; Tables;
• Pagination: p. 35-42
• Serial:
  • Transportation Journal
  • Volume: 39
  • Issue Number: 4
  • Publisher: American Society of Transportation and Logistics
  • ISSN: 0041-1612
  • Serial URL: http://www.jstor.org/page/journal/transportationj/about.html

Subject/Index Terms

• TRT Terms: Air routes; Air transportation; Air transportation policy; Air travel; Airlines; Business practices; Discount fares; Empirical methods; Regression analysis
• Identifier Terms: Air Canada; Canadian Airlines International
• Geographic Terms: Canada; United States
• Subject Areas: Administration and Management; Aviation; Data and Information Technology; Economics;

Filing Info

• Accession Number: 00800383
• Record Type: Publication
• Files: TRIS
• Created Date: Oct 15 2000 12:00AM