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Article Dans Une Revue Journal of Transport Economics and Policy Année : 2022

Ex-post Evaluation of the American Airlines–US Airways Merger: a structural approach

Résumé

In this paper, we estimate a structural model of the domestic US airline market to analyze the eect of the recent merger between American Airlines and US Airways. Our results show that, between 2011 and 2016, a substantial fuel price drop in conjunction with changes in consumer preferences toward direct ights completely rationalizes the observed decrease in prices. However, we estimate that, during the same period, more than half of the consumer welfare increase is due, on top of these environmental changes, to the ex-post optimization of the networks of the newly merged airline and of its competitors. Acknowledgments: We would like to thank the Guest Editors and two anonymous referees for helpful comments. Special thanks to Sara Crompton Meade and Mariane Bontemps for proofreading. Funding from the French National Research Agency (ANR) under the Investments for the Future program (Investissements d'Avenir, grant ANR-17-EURE-0010) is gratefully acknowledged.
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hal-03845873 , version 1 (09-11-2022)

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  • HAL Id : hal-03845873 , version 1

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Christian Bontemps, Kevin Remmy, Johnny Wei. Ex-post Evaluation of the American Airlines–US Airways Merger: a structural approach. Journal of Transport Economics and Policy, 2022. ⟨hal-03845873⟩
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