The Effects of Market Structure and Technology on Airline Fleet Composition after Deregulation

The present study examines the effects of market structure and technology on airline fleet composition in the deregulated airline industry. To capture the effects of market structure and technology on airline fleet acquisition and use, a profit function which allows airline fleet in its specificatio...

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Bibliographic Details
Published in:Review of industrial organization 1999-08, Vol.15 (1), p.77-88
Main Authors: ADRANGI, BAHRAM, CHOW, GARLAND, RAFFIEE, KAMBIZ
Format: Article
Language:English
Subjects:
Air fares
Air transportation industry
Aircraft
Airline deregulation
Airline industry
Airlines
Aviation regulation
Deregulation
Economic competition
Economic regulation
Economic theory
Economists
Effects
Financial market structures
Frequent flier programs
Industrial economics
Industrial regulation
Jet aircraft
Organizational change
Profits
Studies
Technological change
Technology
Transportation services
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Summary:The present study examines the effects of market structure and technology on airline fleet composition in the deregulated airline industry. To capture the effects of market structure and technology on airline fleet acquisition and use, a profit function which allows airline fleet in its specification is applied to derive the fleet composition function of an airline. The results show a steady pattern in airlines' adoption of two-engine wide-bodied aircraft during the post-deregulation era, providing evidence that the airlines have responded consistently to changes in market structure and technology in acquiring two-engine wide-bodied aircraft after deregulation.
ISSN:0889-938X
1573-7160
DOI:10.1023/A:1007709227801