|
|
|
|
||||
|
||||
Are the Bankrupt Skies the Friendliest?Federico CilibertoUniversity of Virginia - Department of Economics; Centre for Economic Policy Research (CEPR) Carola SchenoneUniversity of Virginia - McIntire School December 1, 2012 Volume 18, Issue 5, December 2012, Pages 1217–1231, Journal of Corporate Finance Abstract: We use data from the US airline industry to investigate whether firms that are under bankruptcy protection, as well as these firm's product market rivals, change the quality of the products they offer. We measure the quality of the services offered by a carrier using flight cancellations and delays, and the age of the aircraft used by the carrier. We find that delays and cancelations are less frequent during bankruptcy filings but return to their pre-bankruptcy levels once the bankrupt firm emerges from bankruptcy. We also find that firms use Chapter 11 filings to permanently reduce the age of their fleet. We do not find evidence of statistically and economically significant changes by the airline's competitors along any of the dimensions above.
Keywords: Bankruptcy, Chapter 11, Product market quality, Airline industry JEL Classification: G33, L13, L93, K2 Accepted Paper SeriesDate posted: October 30, 2009 ; Last revised: September 20, 2012Suggested CitationContact Information
|
|
|||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.453 seconds
