The Impact of Discount Airlines on Domestic Fares in Canada

The oligopolistic tendencies of the airline industry are even more pronounced in Canada than in the United States. However, the impact of low-fare carriers in the Canadian context has not been tested empirically. The purpose of this article is to determine whether the presence of a low-fare carrier...

Full description

Saved in:
Bibliographic Details
Published in:Transportation journal 2000-07, Vol.39 (4), p.35-42
Main Author: MENTZER, MARC S.
Format: Article
Language:English
Subjects:
Air fares
Air transport
Air transportation and traffic
Air transportation industry
Airline industry
Airlines
Alliances
Applied sciences
Canada
Cities
City pairs
Civil aviation
Comparative studies
Competition
Correlation analysis
Costs
Discounts
Economic competition
Exact sciences and technology
Ground, air and sea transportation, marine construction
Impact analysis
Local service air lines
Management
Passenger service
Regression analysis
Regulated industries
Regulation
Tender offers
Transportation
Transportation sector
Travelers
Variables
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The oligopolistic tendencies of the airline industry are even more pronounced in Canada than in the United States. However, the impact of low-fare carriers in the Canadian context has not been tested empirically. The purpose of this article is to determine whether the presence of a low-fare carrier on a domestic Canadian route suppresses air fares of the major airlines. First, background material on the Canadian airline industry is provided. Next, regression analysis is applied to data on 163 city-pairs within Canada to identify the effect, if any, of low-fare carriers on major airlines' fares. Finally, the implications for public policy are discussed briefly.
ISSN:0041-1612
2157-328X