Network Competition and Effects of Open Skies in Transatlantic Aviation

This paper examines how competition in the transatlantic aviation market has evolved over the last decade and evaluates the effects of Open Skies agreements on service levels in specific U.S. and European markets. The authors route analysis reveals that, in aggregate since 2000, transatlantic routes have seen an increase in number of competitors. U.S. carriers have gained a disproportionate share of new transatlantic service, leveraging the network effects of flying from their hubs. In the analysis of the effects of Open Skies between European countries and the U.S., the authors find that the agreements have resulted in both increases and decreases in service levels. Of the 22 European countries with U.S. Open Skies agreements in place by 2007, only seven demonstrated overall increases in service levels while six demonstrated overall reductions. Five countries saw no significant change and the remaining four have yet to receive direct transatlantic service, suggesting that liberalization alone does not oblige service level increases.

Language

  • English

Media Info

  • Media Type: DVD
  • Features: Appendices; Figures; References; Tables;
  • Pagination: 14p
  • Monograph Title: TRB 89th Annual Meeting Compendium of Papers DVD

Subject/Index Terms

Filing Info

  • Accession Number: 01150984
  • Record Type: Publication
  • Report/Paper Numbers: 10-0559
  • Files: PRP, TRIS, TRB
  • Created Date: Jan 25 2010 10:17AM