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.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/1588960
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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
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Serial:
- Transportation Journal
- Volume: 39
- Issue Number: 4
- Publisher: American Society of Transportation and Logistics
- ISSN: 0041-1612
- Serial URL: https://scholarlypublishingcollective.org/psup/transportation-journal
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