Naslov
Airline Mergers - Responding to Market Changes and Inducing New Market Strucutres

Autori
Savić, Iva

Izvornik
Issues in aviation law and policy (1934-7170) 10 (2010), 1; 57-82

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
airline mergers; antitrust; US carriers; EU carriers; cross-border mergers; alliances; low cost carriers (LCCs); US Department for Transport (DOT); European Commission; Regulation 139/2004

Sažetak
It is a fact that most network carriers are faced with losses, in the U.S. and in the rest of the world as well. Extending airline networks more than was necessary led to overcapacity. Old and costly infrastructure, as well as labor union requirements, brought additional costs, and strong competition from low-cost carriers not only decreased network carriers’ profits but raised questions about their efficiency and future existence. When rising oil prices, taxes, safety regulations, and new environmental schemes are added to the mix, it becomes just too much for them to bear. So what is it that causes airlines to merge? And what are the consequences of these mergers for the future structure of the aviation market and for air transport? This paper looks for the answers to these questions. It begins with a brief analysis of the first airline mergers at the time of market deregulation in the U.S. and the liberalization of air transport in the EU. Next is a discussion of some problems of domestic and cross-border mergers and their regulation in the respective markets. Finally, the paper illustrates the inevitability of airline mergers to come and the need for further liberalization and consolidation of the global airline market.

Izvorni jezik
Engleski

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