EUROPEAN AIRLINE MERGERS, ALLIANCE CONSOLIDATION, AND CONSUMER WELFARE

This paper explored the effects of a European airline merger followed by a consolidation of two competing international alliances. The exercise has been inspired by the Air France-KLM merger which is expected to spur consolidation of the Northwest-KLM and SkyTeam alliances into a single mega-alliance. The results of the analysis show that, although the airlines benefit through higher profits, the merger and alliance consolidation harm consumers while reducing overall social surplus.

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  • Corporate Authors:

    Elsevier

    The Boulevard, Langford Lane
    Kidlington, Oxford  United Kingdom  OX5 1GB
  • Authors:
    • Brueckner, J K
    • Pels, E
  • Publication Date: 2005-1

Language

  • English

Media Info

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Filing Info

  • Accession Number: 00988197
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 21 2005 12:00AM