Airline Partnerships and Schedule Coordination

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  2. Dr Volodymyr Bilotkach
Author(s)Bilotkach V
Publication type Article
JournalJournal of Transport Economics and Policy
Year2007
Volume41
Issue3
Pages413-425
ISSN (print)0022-5258
ISSN (electronic)1754-5951
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Scheduling coordination is considered both a reason for and a consequence of airline consolidation. The authors formally model this dimension of airline partnerships, with complementary alliance where stop-over delays affect passengers' utility. They compare partnership where carriers are only allowed to coordinate scheduling to the one, where airlines can jointly set prices and schedules. Coordination in fares and schedules yields lower fares and better scheduling coordination. Coordination in only the price results in lower consumer welfare than under no coordination. The authors suggest an example of a complementary airline alliance hurting interline passengers.
PublisherUniversity of Bath
URLhttp://www.ingentaconnect.com/content/lse/jtep/2007/00000041/00000003/art00007
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