Estimating the Economic Effects of Airline Deregulation: Evidence from the Turkish Airline Industry (original) (raw)

Reviewing Regulatory Policy for Broadband in Turkey: Does EU Jacket Fit Everyone?

More than ten years after the deregulation in telecommunications industry, Turkey still has the least penetrated and the least competitive broadband market in Europe. This paper elaborates the poor performance in Turkish broadband market emphasizing on institutional limitations of promoting service-based competition through ladder of investment approach, which is favored by EU Regulatory Framework. It argues that the mentioned type of broadband policy has failed and also delayed facility-based competition. The paper then focuses on potentials and limitations of facility-based competition through next generation access networks.

A Study of the Strategic Responses of Turkish Airline Companies to the Deregulation in Turkey

Journal of Management Research, 2013

Turkey opened up its domestic airline market to competition via deregulation in 2003. Thus, new airline companies had the chance to enter the domestic market in which only one airline was previously operating. The aim of this study is to reveal the strategic responses given by the existing and new airline companies in the domestic market which resulted following deregulation. The research findings show that to some extent competition has been brought into airline market in Turkey, Turkish airline companies have created different strategies in this competitive environment, they have tried to position themselves in terms of Porter's competitive strategies and, under the concept of these strategies, they have started to use new strategic tools.

Pre-flight considerations, in-flight services, and post-flight receptions: factors influencing passengers' international airline choices

Journal of Air Transport Studies, 2018

The proliferation of airlines plying the international routes, triggered by the needed deregulation policies, has equally caused prospective air travelers to be constantly faced with critical pre-flight decisions, especially as they regard airline choice making for scheduled and on-demand flights. Considering the international bound passengers for scheduled flights at MMIA, this paper examines seventeen variables, wilfully or unconsciously thought-out by the passengers before choosing the airline to travel with. Factor analysis unveils that there are five components with Eigenvalue higher than the critical (1.000) and with an appreciable cumulative percent of variance (62.336 percent), indicative that there are five latent factors determining international passengers' airline choices from a developing country. The Varimax rotated component matrix placed eleven variables with factor loading (>0.70) on these five factors. The paper concludes that the service quality of the full spectra of the airlines' pre-flight, in-flight and post-flight services could be more carefully considered, maintained and regularly upgraded in order to attract and, or retain passengers.

Liberalization of air transport

… of Network Industries: The Liberalisation of …, 2011

Several countries and regions have liberalized air transport markets, spearheaded by the US Deregulation Act of 1978. The historic and political drivers and expectations associated with liberalization are examined and how the regulatory environment developed during the post deregulation years both in the USA and Europe. Four principal areas of regulatory reforms in air transport are covered: (1) domestic markets; (2) air services agreements; (3) associated services; and (4) inter-regional open aviation areas. Examples are discussed of each: Deregulation in the US and liberalization in the EU as an example of the first; open skies air services agreements of the second; groundhandling, charter and air cargo liberalization of the third; and European Common Aviation Area (ECAA) and the Open Aviation Area (OAA) of the fourth. The chapter covers the unfounded expectation of stability and equilibrium to form over time in liberalized air transport markets: Airline executives are misled to view industry concentration as inevitable where only few players will survive. In the chapter it is argued that liberalized air transport markets are expected to have relatively low entry and exit costs and therefore non-existence of market equilibrium: Whenever there is short-run excess capacity, there is unlikely to be a competitive equilibrium. In such a situation, the resources are allocated inefficiently and actors will attempt to cooperate in their activities or merge. Concentration means opportunities for new entry as remaining players pursue cost restructuring and the industry de-concentrates as new players gain foothold. The history of liberalization in air transport markets has shown that successes, small and large, were made, but also a great number of failures, as incumbent airlines tried to adjust to the new environment and new airlines entered. The chapter covers why troubled and failed airlines have not called for re-regulation in the pursuit of stability. It also discusses if regulation is the way to secure stability and whether airlines in their decisions are in a better position to cope with market instabilities than the regulator. The conclusion of this history overview of air transport liberalization is that raising regulatory barriers to entry, a full-scale re-regulation, will neither achieve financial stability nor raise consumer benefits in the long-term.

Estimating the effects of entry regulation in the Istanbul taxicab market

Transportation Research Part A-policy and Practice, 2011

The economic literature shows that entry regulation in taxicab markets brings about a dramatic increase in medallion prices or license values of taxicabs. However, there is no study estimating what the effect of regulation is exactly on real medallion prices. We develop a model to estimate the effect of entry restrictions in the Istanbul taxicab market over real medallion prices and inflation. Our findings contribute that entry regulation in taxicab markets increases medallion prices. Moreover, we find that entry regulation in Istanbul pressures inflation rates as well.

An Empirical Analysis of a Merger between a Network and Low-Cost Airlines

SSRN Electronic Journal, 2000

We use a difference-in-difference estimator to examine the effects of a merger involving three airlines. The novelty lies in the examination of this operation in two distinct scenarios: (1) on routes where two low-cost carriers and (2) on routes where a network and one of the low-cost airlines had previously been competing. We report a reduction in frequencies but no substantial effect on prices in the first scenario, while in the second we report an increase in prices but no substantial effect on frequencies. These results may be attributed to the differences in passenger types flying on these routes.

XXXII CONFERENZA ITALIANA DI SCIENZE REGIONALI

inter-net.it

Il presente lavoro si propone verificare quali fattori determinano le strategie di prezzo delle compagnie aeree, focalizzandosi sui comportamenti discriminatori e, in particolare, sulle strategie di discriminazione intertemporale di prezzo, mettendo in luce se tali strategie sono di

The impact of airport fees on fares for the leisure air travel market: the case of Spain

A panel data is used to determine the incidence of airport fees on fares in the Spanish leisure market airlines. We also study its structure through an empirical specification of a pricing and demand equation system. The results show the existence of market power, strategic behaviour and density economics. We also demonstrate that airlines pass all the airport fees onto customers by increasing fares. Furthermore, we find that the behavior of airlines in routes with the presence of low cost carriers do not differ from other routes.

The Impact of Airline Liberalization on Fare: The Case of the Philippines 1 The Impact of Airline Liberalization on Fare: The Case of the Philippines

This paper explores the impact of liberalization on airfare using a framework that builds on previous work but adapted to the idiosyncrasies of the Philippine airline industry. Using a sample of ten routes with varying market characteristics for the period 1981–2003 and the generalized method of moments to estimate the system of equations simultaneously, the findings indicate that airfare per kilometer is 10 percent lower, on average, after liberalization. Furthermore, more than 90 percent of domestic airline passengers in 2003 benefited from lower fares due to discounts and promos, as a result of competition, in order to stimulate demand.

Anti-Competitive Effects of Common Ownership Charles River Associates (CRA

Many natural competitors are jointly held by a small set of large diversified institutional investors. In the US airline industry, taking common ownership into account implies increases in market concentration that are 10 times larger than what is "presumed likely to enhance market power" by antitrust authorities. We use within-route variation over time to identify a positive effect of common ownership on ticket prices.