THE IMPACT OF FIRM FINANCIAL CONDITION ON AIR FARES – A CONTINGENCY APPROACH

No hay miniatura disponible

Fecha

Autores

Título de la revista

ISSN de la revista

Título del volumen

Editor

Resumen

Descripción

This research reviews and reconciles previous research on the relationship between airline financial condition and air fares. A contingency framework is developed and empirically tested using data from the U.S. airline industry. The results suggest that the magnitude of the effect of financial condition on prices depends on airline characteristics such as operating costs and market power as well as on competitive characteristics like market concentration and a firm’s financial condition relative to its route market competitors. It is further shown that this effect is substantially larger for firms operating under Chapter 11 protection than for firms approaching bankruptcy.

Palabras clave

Citación

URI

http://hdl.handle.net/123456789/609591

Ver documento

https://ageconsearch.umn.edu/record/208020/files/2006_5A_FinCondition_paper.pdf

Colecciones

University of Minnesota