Jh. Park, THE EFFECTS OF AIRLINE ALLIANCES ON MARKETS AND ECONOMIC WELFARE, TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW, 33(3), 1997, pp. 181-195
Citations number
15
Categorie Soggetti
Transportation,"Operatione Research & Management Science",Transportation
Recently, major airlines have been extending their service networks vi
a strategic alliances with other airlines as a means of forming global
service networks. This theoretical analysis examines the effects on f
irms' outputs and profits, air fare, and economic welfare of two types
of airline alliances: complementary and parallel alliances. It is sho
wn that the two alliances have different effects on output and economi
c welfare. The complementary alliance is likely to increase economic w
elfare, while the parallel alliance to decrease it. We also find condi
tions under which each type of alliance generates welfare improvement.
Some policy implications are derived based on these findings. (C) 199
7 Elsevier Science Ltd.