An empirical analysis of the determinants of network construction for Azul Airlines

This paper describes an econometric model of the Brazilian domestic carrier Azul Airlines’ network construction. We employed a discrete-choice framework of airline route entry to examine the effects of the merger of another regional carrier, Trip Airlines, with Azul in 2012, especially on its entry...

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Bibliographic Details
Published in:Journal of air transport management 2022-06, Vol.101, p.102207, Article 102207
Main Authors: Oliveira, Bruno F., Oliveira, Alessandro V.M.
Format: Article
Language:English
Subjects:
Air transport
Airline
Entry
Merger
Network
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Summary:This paper describes an econometric model of the Brazilian domestic carrier Azul Airlines’ network construction. We employed a discrete-choice framework of airline route entry to examine the effects of the merger of another regional carrier, Trip Airlines, with Azul in 2012, especially on its entry decisions. The results suggest that post-merger, Azul has adopted a more idiosyncratic entry pattern, focusing on the regional flights segment to conquer many monopoly positions across the country, and strengthening its profitability without compromising its distinguished expansion pace in the industry.
ISSN:0969-6997
1873-2089
DOI:10.1016/j.jairtraman.2022.102207