Asymmetric Regulation and Airport Dominance in International Aviation: Evidence from London – New York Market

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  2. Dr Volodymyr Bilotkach
Author(s)Bilotkach V
Publication type Article
JournalSouthern Economic Journal
ISSN (print)0038-4038
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International airline markets have the rather unusual feature of partial deregulation with asymmetric regulatory constraints: Some carriers face entry restrictions different from others for a given route. Like domestic air travel, international travel also features hubs, where a single carrier may dominate a given airport. This article examines the effects of asymmetric regulation and airport dominance on airlines' fares in the London-New York market, a market uniquely suited for identifying the effects of both of these issues. Comparison data from the symmetrically regulated Frankfurt-New York and Paris-New York markets enable a difference-in-differences identification strategy. Regulatory restrictions are found to decrease an affected carrier's fares, whereas airport dominance increases a dominant airline's fares.
PublisherSouthern Economic Association
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