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Competitive effects of the airlines-within-airlines strategy – Pricing and route entry patterns

Homsombat, W, Lei, Z and Fu, X (2014) Competitive effects of the airlines-within-airlines strategy – Pricing and route entry patterns Transportation Research Part E: Logistics and Transportation Review, 63 (March). pp. 1-16.

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Abstract

This paper investigates the effects of the airlines-within-airlines strategy adopted by Qantas airline group, which simultaneously runs a full-service airline (Qantas Airways) and a low-cost carrier (Jetstar Airways). Our empirical investigation of airline pricing and route entry patterns in the Australian domestic market suggests that Jetstar has been used as a fighting brand against rival low cost carriers. Such a strategy increases group airlines’ prices at the expenses of rival airlines. There is preliminary evidence that pricing benefits to Qantas Group come from increased market power as well as service quality improvements.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > School of Hospitality and Tourism Management
Authors :
AuthorsEmailORCID
Homsombat, WUNSPECIFIEDUNSPECIFIED
Lei, ZUNSPECIFIEDUNSPECIFIED
Fu, XUNSPECIFIEDUNSPECIFIED
Date : March 2014
Identification Number : 10.1016/j.tre.2013.12.008
Copyright Disclaimer : Copyright © 2013 Elsevier Ltd. All rights reserved.
Uncontrolled Keywords : Low-cost carrier, Full-service airline, Airlines-within-Airlines strategy, Airline competition
Depositing User : Symplectic Elements
Date Deposited : 15 Jul 2016 14:13
Last Modified : 15 Jul 2016 14:13
URI: http://epubs.surrey.ac.uk/id/eprint/811226

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