Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51352
Authors: 
Hüschelrath, Kai
Müller, Kathrin
Year of Publication: 
2011
Series/Report no.: 
ZEW Discussion Papers 11-059
Abstract: 
We use T-100 traffic data and DB1B fare data from the U.S. Department of Transportation to identify patterns and effects of entry by network carriers and low-cost carriers in non-stop U.S. airline markets. For the sample period from 1996 to 2009, we find that entry activity of low-cost carriers did not only experience significant absolute increases but also led to substantial fare reductions. As route entries by network carriers do not have comparable effects, the existence and expansion of low-cost carriers must be considered as the main driver of competition in the domestic U.S. airline industry.
Subjects: 
Airline industry
liberalisation
entry
low-cost carriers
JEL: 
L40
L93
Document Type: 
Working Paper

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