Entry and exit by European low-cost and traditional carriers

• María José Gil-Moltó ^[1] ; Claudio A. G. Piga ^[2]
  1. [1] University of Leicester

     University of Leicester

     GB.ENG.H4.31UC, Reino Unido

     
  2. [2] Loughborough University

     Loughborough University

     Charnwood District, Reino Unido

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 14, Nº. 3, 2008, págs. 577-598
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • The authors analyse the entry and exit activity in the UK-Europe airline markets and study the differential traits of three main airlines (British Airways, EasyJet and RyanAir) during1997-2004. They find that entry and exit are more likely in large markets and in markets with a high number of incumbents. Already operating in the citypair enhances the probability that the same firm will enter another route in the same city-pair. The existence of charter flights generates both entries and exits, while high seasonality generally discourages entry. Also, the level of service quality provided by the incumbents matters.