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I find that, in nonstop markets, the price for routes formerly competitive between United and Continental Airlines increases significantly following the merger.
Our findings, based on panel data for major US airlines during the period 1984-1991, indicate that (1) as a result of successful efforts by airlines to reduce the scope for competition, aviation technology now exhibits increasing rather than constant returns to network size as predicted by cost studies prior to deregulation; (2) deregulation failed to produce evidence of efficiency convergence among carriers as would be expected under sufficiently competitive conditions.
Such a strategy increases group airlines’ prices at the expenses of rival airlines.
International airline alliances have the effect of improving the efficiency and services of airlines, by, for example, lowering operating costs and making connections easier.
In particular, the study results indicated that airlines with excellent per...
We find that alliance members on average had a higher utilization rate than non-aligned airlines, but their older average fleet age indicates that they did not take full advantage of the potentials offered through common aircraft investment activities.
Third, M&A between US airlines have both positive and negative effects in terms of efficiency and economies of scale.
Since both United and Continental Airlines are legacy carriers, this paper provides informative results for future antitrust decision-making.
Findings – Results indicate that the efficiency of the airlines in Europe is the lowest among the airlines in these three regions.

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