By Darin Lee
This can be the 1st in a brand new sequence of books at the economics of the airline undefined. The sequence is a suite of unique, state-of-the-art examine papers from a global panel of wonderful participants. quantity 1 will specialize in themes concerning festival coverage and antitrust, reminiscent of the industrial effect of airline alliances (both overseas and domestic), predation, and incumbent responses to within your budget access. a part of a "New Series", this quantity specializes in festival coverage and antitrust. Its individuals are overseas specialists within the box.
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Additional info for Advances in Airline Economics, Volume 1: Competition Policy and Antritrust (Advances in Airline Economics)
Still, the question remains as to the appropriate measures of revenue and costs to be used for the test. Should a given flight’s revenues, for example, include some portion of the revenues of passengers connecting from or to other flights? Should the measure of flight costs include only variable costs, or should it also include fixed costs such as aircraft costs? Clearly, whether a carrier is found to be engaging in predatory conduct will turn on the answers to such questions. 6 See Brooke Group v.
16 Under this policy, full coach fares were cut initially by 38 percent, and reduced further after responses by Northwest, Continental, and other airlines. The plaintiffs made additional allegations, including that American had attempted to convince rival firms to set higher prices jointly. With respect to market definition, the plaintiffs argued that both regions and city pairs could be relevant geographic markets. The plaintiffs took the position that entry barriers into airline markets included computer reservation systems, frequent flyer plans, lack of available slots at certain airports, lack of available gates at certain airports, travel commission overrides, and frequency dominance.
16. 20. 16. 25 It appears from the decision of the Court of Appeal that Lufthansa’s appeal was based upon several points. Lufthansa apparently argued that the geographic market definition adopted by the Federal Cartel Office was too narrow, and that the relevant market should include more than a single route and other modes of transportation. The Court of Appeal noted that even if certain “sprinter” trains were included in the relevant market, Lufthansa would be deemed dominant. The Court of Appeal also decided that leisure and business travelers could not be considered separately in determining dominant market position.
Advances in Airline Economics, Volume 1: Competition Policy and Antritrust (Advances in Airline Economics) by Darin Lee