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Airline Deregulation and Airline Economics

Airline Deregulation and Airline Economics

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Airline Deregulation and Airline Economics

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  1. Airline Deregulation and Airline Economics

  2. Airports you have known?

  3. References • Gillen, D. “Airline Business Models and Networks” Review of Network Economics, 2006.

  4. Outline • History of Regulation and Deregulation in Airlines • The evolution of Hub and Spoke Networks • Computer Reservation Systems, Frequent Flyer Plans • The emergence of the Low Cost Carrier as the “21st century business model” • Predatory pricing in Airlines

  5. The LCC Advantage

  6. Sources of Cost Advantage • Labour costs • Sales and Reservations (internet) • Maintenance costs