Can parallel airline alliances be welfare improving? The case of airline–airport vertical agreement

Parallel airline alliances have negative effects on consumers a priori; however, they can be counteracted if airports may modify the behavior of airlines. In particular, vertical airport–airline agreements allow airport to influence competition downstream market, changing parallel alliances. this paper, we analyze in context between pairs competition. We show that under airports, are welfare improving, and number passengers increases, against former studies. These results offer new brand analyses considered by authorities evaluate