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Social and Behavioral Sciences

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University of New Hampshire

2020

Airfare

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Airline Fare Competition In The Post-Merger Era, Parker Michael Armstrong Jan 2020

Airline Fare Competition In The Post-Merger Era, Parker Michael Armstrong

Honors Theses and Capstones

This paper expands on the research of competition within the airline industry. This analysis estimates the fare-impact of new full-service or low-cost competition in city-pair markets in the domestic United States. Given the comprehensive restructuring of the airline industry as a result of the Delta-Northwest, United-Continental, and American-US Airways mergers, this analysis examines how the fare-impact of competition may have changed since the pre-merger era. This paper suggests evidence of a weaker effect regarding the entry of a low-cost carrier and a stronger effect regarding the entry of a legacy carrier in the post-merger era relative to the pre-merger period. …