Does market exit of a network airline affect airline prices and frequencies on tourist routes?

This paper examines the influence of network airline bankruptcy (and consequently its market exit) on prices and route frequencies. Specifically, the 2011 case of Spanair is analyzed, using Spanish route data for the period 2006-2013. The study finds that the Spanair bankruptcy led to a reduction in...

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Detalles Bibliográficos
Autores: Fageda, Xavier, 1975-, Jiménez González, Juan Luis, Perdiguero, Jordi, Marrero, Kevin
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2017
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/119865
Acceso en línea:https://hdl.handle.net/2445/119865
Access Level:acceso abierto
Palabra clave:Línies aèries
Política turística
Airlines
Politics of tourism
Descripción
Sumario:This paper examines the influence of network airline bankruptcy (and consequently its market exit) on prices and route frequencies. Specifically, the 2011 case of Spanair is analyzed, using Spanish route data for the period 2006-2013. The study finds that the Spanair bankruptcy led to a reduction in prices on those routes where its services were replaced by low-cost airlines. On the other hand, there was no evidence of any clear reduction in flight frequencies. Given that tourist passengers are particularly sensitive to prices, this paper provide evidence about the positive impact of low-cost airlines on tourism.