Airline Deregulation and Airline Economics
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Airline Deregulation and Airline Economics
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Airline Deregulation and Airline Economics. Airports you have known?. References. Gillen, D. “Airline Business Models and Networks” Review of Network Economics, 2006. Outline. History of Regulation and Deregulation in Airlines The evolution of Hub and Spoke Networks - PowerPoint PPT Presentation
Transcript of Airline Deregulation and Airline Economics
Airline Deregulation and Airline Economics
Airports you have known?
References
• Gillen, D. “Airline Business Models and Networks” Review of Network Economics, 2006.
Outline
• History of Regulation and Deregulation in Airlines
• The evolution of Hub and Spoke Networks• Computer Reservation Systems, Frequent
Flyer Plans• The emergence of the Low Cost Carrier as the
“21st century business model”• Predatory pricing in Airlines
The LCC AdvantageAverage Stage Length Flight Cost per Seat Mile
Southwest 472 4.0
United 639 8.1
Delta 546 7.1
Sources of Cost Advantage
• Labour costs• Sales and Reservations (internet)• Maintenance costs