The Impact of Airline Liberalization on Fare: The Case of the Philippines
نویسنده
چکیده
This paper explores the impact of liberalization on airfare using a framework that builds on previous work but adapted to the idiosyncrasies of the Philippine airline industry. Using a sample of ten routes with varying market characteristics for the period 1981–2003 and the generalized method of moments to estimate the system of equations simultaneously, the findings indicate that airfare per kilometer is 10 percent lower, on average, after liberalization. Furthermore, more than 90 percent of domestic airline passengers in 2003 benefited from lower fares due to discounts and promos, as a result of competition, in order to stimulate demand.
منابع مشابه
Two-stage stochastic programming model for capacitated complete star p-hub network with different fare classes of customers
In this paper, a stochastic programming approach is applied to the airline network revenue management problem. The airline network with the arc capacitated single hub location problem based on complete–star p-hub network is considered. We try to maximize the profit of the transportation company by choosing the best hub locations and network topology, applying revenue management techniques to al...
متن کاملLiberalization Sequencing and Currency Instability: A Case Study of 20 Emerging Economies
Abstract Financial crises and currency instabilities within developing and emerging economies during the last decade had a tremendous impact on the economic performance and increased vulnerability of economies against domestic and foreign shocks. The timing of capital liberalization is one of the significant debates among other issues related to currency instability, and it would be more conven...
متن کاملThe Impact of Trade Liberalization on Industrial Growth of India: An Empirical Investigation
This paper examines impact of trade liberalization on industrial growth of India. The research problem is expressed as âTo what extent does trade liberalization or openness of the economy influence industrial growth of India?â To identify the impacts of trade liberalization, total time period, 1970-2010, is divided into two sub periods of before trade liberalization i.e. (1970 to 1990) an...
متن کاملEffects of Trip Purpose on Transit Fare Elasticiy, Case Study of Isfahan
This paper explores the effects of trip purpose on price elasticity of bus mode. Data for the research was collected through passenger field survey in Isfahan, Iran. Due to the nature of the data, nonlinear regression and nonparametric statistics tools were used for analysis. It was found that the logarithmic function best explains the relationship between percentage of change in demand and per...
متن کامل