Published in
SSRN Electronic Journal
DOI: 10.2139/ssrn.1844891
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An Empirical Analysis of a Merger between a Network and Low-Cost Airlines
Journal article published in 2011 by
Xavier 1975 Fageda 
,
Jordi Perdiguero
,
Jordi Perdiguero
Abstract
We use a difference-in-difference estimator to examine the effects of a merger involving three airlines. The novelty lies in the examination of this operation in two distinct scenarios: (1) on routes where two low-cost carriers and (2) on routes where a network and one of the low-cost airlines had previously been competing. We report a reduction in frequencies but no substantial effect on prices in the first scenario, while in the second we report an increase in prices but no substantial effect on frequencies. These results may be attributed to the differences in passenger types flying on these routes.