Portal de Periódicos da CAPES

Airline competition in the British Isles

2009; Elsevier BV; Volume: 46; Issue: 2 Linguagem: Inglês

10.1016/j.tre.2009.08.009

1878-5794

Alberto A. Gaggero, Claudio A. Piga,

Transportation Planning and Optimization

We study the relationship between pricing and market structure on the routes connecting the UK and the Republic of Ireland. Because in 2007 the European Commission prohibited the takeover of Aer Lingus by Ryanair, the analysis focuses on their pricing strategies in particular. We use an original dataset of fares posted on-line, which allows to control for the fares' inter-temporal pattern for each specific flight and each carrier's specific yield management system. Our evidence supports the European Commission's view that the elimination of a competitor in the Irish airline market is likely to have harmful consequences for consumers.