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Author: | Gillen, D. Morrison, W. |
Title: | Bundling, integration and the delivered price of air travel: are low cost carriers full service competitors? |
Journal: | Journal of Air Transport Management
2003 : JAN, VOL. 9:1, p. 15-23 |
Index terms: | Airports Air transport Travel Cost effectiveness |
Language: | eng |
Abstract: | The authors explore the interaction between full service carriers and low cost carriers in a market for air travel, of which flying is merely one component in a bundle of services. Market interactions between FSCs and LCCs can exhibit price stability and relatively low price dispersion. The model also indicates that vertical relationships between airports and airlines can be both profit enhancing and socially desirable. |
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