The effects of market structure and technology on airline fleet composition after deregulation

The present study examines the effects of market structure and technology o n airline fleet composition in the deregulated airline industry. To capture the effects of market structure and technology on airline fleet acquisitio n and use, a profit function which allows airline fleet in its specificatio n is applied to derive the fleet composition function of an airline. The re sults show a steady pattern in airlines' adoption of two-engine wide-bodied aircraft during the post-deregulation era, providing evidence that the air lines have responded consistently to changes in market structure and techno logy in acquiring two-engine wide-bodied aircraft after deregulation.