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Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/58973
Price rivalry in airline markets: A study of a successful strategy of a network carrier against a low-cost carrier
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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.
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FAGEDA, Xavier, JIMÉNEZ GONZÁLEZ, Juan luis, PERDIGUERO, Jordi. Price rivalry in airline markets: A study of a successful strategy of a network carrier against a low-cost carrier. _IREA – Working Papers_. 2010. Vol. IR10/07. [consulta: 16 de desembre de 2025]. ISSN: 2014-1254. [Disponible a: https://hdl.handle.net/2445/58973]