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- W600453041 abstract "The UK has been a key contributor to the pressures for deregulating international European aviation, being a pioneer in liberalising bilateral agreements with other European partners. The reactions of airlines on these liberal markets provide a wealth of evidence as to how airlines behave in free competitive markets, and in particular on the means by which positioning is translated into market power. Their experience should be of value to those European Union airlines currently immersed in a similar market environment. A model of simultaneous consumerairline response is calibrated for the most liberal UK-EU markets, and is presented in two parts: firstly, a relative market share (logit) equation which evaluates consumer response to service attributes; secondly, a set of fare equations implicit in the relative market share model, which describe airline adjustments in pricing patterns for a given alteration on its attribute mix. Four main conclusions are drawn from the exercise. First, relative frequency share is the most effective quality attribute in generating market share. Secondly, travellers are more sensitive to the least restricted of the discounted fares than to any other fare type. Thirdly, airlines can transform higher market share into pricing power only to the extent that such market share affects concentration. Lastly, airport presence provides a weak source of pricing power directly, but a significant one indirectly through its effect on route market share. (*) Final version: January 1995. (* *) J.D. Jorge-Calderon is affiliated with the Institute for Transport Studies, University of Leeds. The author is grateful to P. J. Mackie and J. P. Toner at the Institute for Transport Studies, Univesity of Leeds for useful comments on earlier drafts of this paper. Any remaining error or omission can only be attributed to the author. This content downloaded from 207.46.13.51 on Sun, 19 Jun 2016 06:04:28 UTC All use subject to http://about.jstor.org/terms 64 J. D. Jorge-Calderon" @default.
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- W600453041 date "1996-01-01" @default.
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- W600453041 title "EVALUATING THE EFFECTIVENESS OF AIRLINE OPERATING STRATEGIES IN U.K. INTERNATIONAL MARKETS." @default.
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