Demand and Consumer Welfare Impacts of International Airline Liberalization: The Case of the North Atlantic

Details

• Creators:
  Maillebiau, Eric ; Hansen, Mark
• Corporate Creators:
  University of California, Berkeley. Institute of Transportation Studies
• Subject/TRT Terms:
  • Air routes
  • Air travel
  • Demand
  • Economic factors
  • Fares
  • International travel
• Publication/ Report Number:
  UCTC No. 403
• Resource Type:
  Tech Report
• Geographical Coverage:
  North Atlantic Ocean
• Corporate Publisher:
  University of California, Berkeley. Institute of Transportation Studies. Library
• Description:
  This paper estimates the demand and consumer welfare impacts of liberalizing economic regulation of the North Atlantic air routes. The approach is to first estimate demand functions for North Atlantic air travel. Unlike prior demand studies, these demand models incorporate service accessibility, based on the number of gateways from which service is available, along with price as supply-side variables. Next, the authors determine the impact of liberalization on fare and service accessibility. Combining these results, they are able to estimate how liberalization has affected the "generalized cost" -- in this context, a function of monetary cost and service accessibility -- of North Atlantic air travel, and the resulting change in consumer surplus.
• Format:
  PDF
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/63331/dot_63331_DS1.pdf
• File Type:
  [PDF - 1.85 MB]
• Collection(s):
  University Transportation Centers
• Main Document Checksum:
  urn:sha256:19731d2a644317b42b848bc650b7d2a4ebd88b2f7fe1b444c9b1fc056e9f759b