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Title: | Price rivalry in airline markets: A study of a successful strategy of a network carrier against a low-cost carrier |
Author: | Fageda, Xavier, 1975- Jiménez González, Juan Luis Perdiguero, Jordi |
Keywords: | Transport aeri Competència econòmica Logística industrial Commercial aeronautics Competition Business logistics |
Issue Date: | 2010 |
Publisher: | Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública |
Series/Report no: | [WP E-IR10/07] |
Abstract: | Competition in airline markets may be tough. In this context, network carriers have two alternative strategies to compete with low-cost carriers. First, they may establish a low-cost subsidiary. Second, they may try to reduce costs using the main brand. This paper examines a successful strategy of the first type implemented by Iberia in the Spanish domestic market. Our analysis of data and the estimation of a pricing equation show that Iberia has been able to charge lower prices than rivals with its low-cost subsidiary. The pricing policy of the Spanish network carrier has been particularly aggressive in less dense routes and shorter routes. |
Note: | Reproducció del document publicat a: http://www.ub.edu/irea/working_papers/2010/201007.pdf |
It is part of: | IREA – Working Papers, 2010, IR10/07 |
URI: | http://hdl.handle.net/2445/58973 |
ISSN: | 2014-1254 |
Appears in Collections: | Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA)) |
Files in This Item:
File | Description | Size | Format | |
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IR10-007_Fageda.pdf | 908.76 kB | Adobe PDF | View/Open |
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