Competition and regulation in the airline industry
Airline deregulation: is it time to finish the job?
A critical look at the report of the National Commission to Ensure a Strong Competitive Airline Industry, including an examination of the current state of the industry and prospects for the future.
Regional airports: fear of not flying
3 for the economists
First flight centennial
TFP growth, change in efficiency, and technological progress in the U. S. airline industry: 1970 to 1981
An overview of the airline industry's early adaptations to deregulation using a best-practice cost function approach; measures cost efficiency and changes in total factor productivity growth for airlines in the 1970s and early 1980s and discusses how these findings relate to individual airline performance.
Price discrimination in the airline market: the effect of market concentration
Economic theory suggests that a monopolist can price discriminate more successfully than can a perfectly competitive firm. Most real-life markets, however, fall somewhere in between the two extremes. What happens as the market becomes more competitive: Does price discrimination increase or decrease? This paper examines how price discrimination changes with market concentration in the airline market. The paper uses data on prices and ticket restrictions across various routes within the United States, controlling for distances and airport gate restrictions. Price discrimination is found to ...
On the record: a conversation with Herb Kelleher
When asked about the secret to Southwest Airlines' success, Herb Kelleher jokingly replies, "Charismatic leadership." Beyond that, being the only major U.S. airline to make a profit every year since 1972 has come down to three factors: having a contrarian strategy and sticking to it, keeping costs down in good times so the company is prepared for the bad times and - perhaps most important - treating employees well and trusting them to do their jobs.