scholarly journals Price Discrimination in International Airline Markets

Author(s):  
Gaurab Aryal ◽  
Charles Murry ◽  
Jonathan W. Williams
2000 ◽  
Vol 49 (2) ◽  
Author(s):  
Frank Fichert

AbstractThe formation of international Airline Alliances can be beneficial to consumers but might also restrict competition in some markets, especially between hub-airports of the Alliance-partners. Competition authorities try to safeguard rivalry, e.g. by restricting the use of frequent-flier programs and by prohibiting predatory behavior. In this paper it is shown that a further opening of airline markets is inevitable. Restrictive bilateral aviation agreements should be replaced by open-skies agreements or a liberal agreement on a multilateral base. Also the “grandfathering” of slots has to be abolished and a market-based allocation mechanism should be established.


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