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Joint Ventures in the Transatlantic Airline Market

Xavier Fageda

Ricardo Flores-Fillol

Bernd Theilen

Airline Economics in Europe

ISBN: 978-1-78973-282-5, eISBN: 978-1-78973-281-8

Publication date: 21 October 2019

Abstract

This study investigates, both theoretically and empirically, the effects of joint ventures on traffic. Although alliances are a pre-condition for joint ventures, both cooperation agreements are different in their nature. The reason is that alliances are revenue-sharing agreements, whereas joint ventures also involve a cost-sharing commitment. Our empirical analysis focuses on the transatlantic market, including non-stop routings (interhub markets) and one-stopover routings (interline markets). Our theoretical and empirical findings emphasize the relevance of economies of traffic density and reveal a positive effect of joint ventures on traffic, both in interhub and interline markets.

Keywords

Acknowledgements

Acknowledgments

We acknowledge financial support from the Spanish Ministery of Economy and Competitiveness and the European Union under projects ECO2016-75410-P (AEI/FEDER, UE) and RTI2018-096155-B-I00 (AEI/FEDER, UE), RecerCaixa, (2017ACUP00276), Universitat Rovira i Virgili (2017PRF-URVB2-B3) and Generalitat de Catalunya (2017SGR644 and 2017SGR770).

Citation

Fageda, X., Flores-Fillol, R. and Theilen, B. (2019), "Joint Ventures in the Transatlantic Airline Market", Airline Economics in Europe (Advances in Airline Economics, Vol. 8), Emerald Publishing Limited, Leeds, pp. 117-136. https://doi.org/10.1108/S2212-160920190000008006

Publisher

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Emerald Publishing Limited