Complementary versus Semi-Complementary Airline Partnerships

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  2. Dr Volodymyr Bilotkach
Author(s)Bilotkach V
Publication type Article
JournalTransportation Research Part B: Methodological
Year2007
Volume41
Issue4
Pages381-393
ISSN (print)0191-2615
ISSN (electronic)1879-2367
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As low-cost airlines or carriers excluded from international markets by regulation may seek to expand internationally in an indirect way through code-sharing agreements, they can choose partner airlines from among domestic or international carriers. The former case results in a semi-complementary partnership, while in the latter a classic complementary alliance is formed. This paper compares welfare properties of the two types of partnerships under economies of traffic density. Semi-complementary partnerships yield higher total welfare (but not necessarily lower prices) when economies of traffic density are strong, demand is more price-sensitive, or where a carrier feeding domestic traffic to international routes is a lower cost one.
PublisherPergamon
URLhttp://dx.doi.org/10.1016/j.trb.2006.06.002
DOI10.1016/j.trb.2006.06.002
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