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• W591218611 abstract "Economies of scale in the airline industry have been an important issue over many years and have featured prominently in discussion on regulation of the industry. In Australia, for instance, fear of monopoly development appears to be a popular rationale for the Two-Airline Policy. (See Kirby (1979) for a discussion of this policy and Kirby (1981, ch. 2) on the issue of monopoly.) Discussion has revealed sharp differences of opinion but economists have generally tended to reject the claims of many representatives of the airline industry that economies of scale exist1 This paper suggests that the issue is clouded by the use on both sides of imprecise terminology, and that much of the apparent conflict is due to differ ences in interpretation of airline scale, which have meant that the discussion is often at cross purposes. Thus a more systematic approach is needed to the concept of airline scale or output. This paper presents a conceptual framework for analysing an airline's scale of operations, estimates an airline cost function based on this framework, and uses the empirical results to simulate the cost implications of some alternative policies for the Australian domestic airline industry." @default.
• W591218611 created "2016-06-24" @default.
• W591218611 creator A5014330761 @default.
• W591218611 date "1986-09-01" @default.
• W591218611 modified "2023-09-23" @default.
• W591218611 title "AIRLINE ECONOMICS OF SCALE AND AUSTRALIAN DOMESTIC AIR TRANSPORT POLICY" @default.
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