A merger effect on different airline groups: empirical study on the Delta-Northwest merger in 2008

Um efeito fusão de diferentes grupos de companhias aéreas: estudo empírico da fusão Delta-Northwest em 2008

Abstracts

The airline industry has performed inconsistently since deregulation in 1978 and there has been a significant profit discrepancy between legacy airlines and low-cost carriers. Starting from the early 2000s, four of the largest legacy airlines chose to consolidate with an effort to increase efficiency and profitability. Delta Air Lines and Northwest Airlines have consolidated in 2008, becoming the largest commercial airline in the world. This paper examined the merger effect on the airfares on top 1,000 U.S. domestic city-pair routes in relation to the number of passengers, the distance, and the market share as well as its potential anticompetitive issues. All airlines were categorized into three groups - Legacy Airlines, Delta-Northwest, and Low-Cost Carriers - and the interactions between the airfares and the variables were examined within each airline group and across different airline groups. It was found that the airfares of legacy airlines and Delta-Northwest decreased at a faster rate than the low-cost carriers while their market shares increased simultaneously irrespective of whether they offered the lowest prices or had the largest market share on each route.

airline industry; merger; legacy airlines; low-cost carriers; antitrust

A indústria do transporte aéreo vem desempenhando inconsistentemente desde a desregulação de 1978 e tem havido uma discrepância significante de lucros entre companhias aéreas "legacy" e companhias aéreas "low cost" nos Estados Unidos. Desde o começo dos anos 2000, quatro das maiores companhias aéreas "legacy" escolheram a consolidação, em um esforço para aumentar a eficiência e a lucratividade. As empresas Delta Air Lines e Nortwest Airlines entraram em fusão em 2008, tornando-se a maior companhia aérea do mundo. Este artigo examina o efeito da fusão nas tarifas aéreas das 1.000 maiores rotas de pares de cidades doméstica norte-americanas com relação ao número de passageiros, a distância, e o market share, bem como questões potencialmente anticoncorrenciais. Todas as companhias aéreas foram categorizadas em três grupos - companhias aéreas "Legacy", "Delta-Northwest" e "Low Cost" - e as interações entre as tarifas e as variáveis foram examinadas dentro de cada grupo de empresas e entre os diferentes grupos. Descobriu-se que as tarifas das companhias companhias aéreas "Legacy" e "Delta-Northwest" caíram a uma taxa mais rápida do que as empresas "Low Cost", enquanto que a sua participação de mercado aumentou simultaneamente independente de terem oferecidos os preços mais baixos ou terem a maior participação em cada rota.

indústria do transporte aéreo; fusão; companhias aéreas "legacy"; companhias aéreas "low cost"

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Publication Dates

• Publication in this collection
  05 Feb 2014
• Date of issue
  Apr 2014

History

• Received
  31 Jan 2013
• Accepted
  23 June 2013
• Reviewed
  07 Mar 2013