New Airline Entry Rates in Deregulated Air Transport Markets

Gudmundsson, S. V. and Van Kranenburg, H., New Airline Entry Rates in Deregulated Air Transport Markets (2002). Transportation Research E: Logistics and Transportation Review, 38 (3-4), 205-219

Posted: 25 Jun 2014

See all articles by Sveinn Vidar Gudmundsson

Sveinn Vidar Gudmundsson

Toulouse Business School

Hans van Kranenburg

Radboud University Nijmegen - Nijmegen School of Management

Date Written: 2002

Abstract

This paper studies the influencing factors on entry (certification) of new airlines into the US airline industry over 21 years (1979-1999). These rates exhibit considerable fluctuations over the observed period. We analyze the US airline industry for a period of 21 years to determine the relationship of the observed fluctuations in the entry rates with political and extraordinary events, economic conditions and several industry specific variables. We present maximum likelihood estimates of an entry model on the negative Binomial distribution. This methodology reflects the discrete nature of the dependent variable. The results support the notions of positive macro-economic and industry specific developments on the entry opportunities of new airline companies.

Keywords: Market entry; Deregulation; Industry ecology; Political signaling; Airline, Low cost airlines; Airline certification;Industry stability; Airline entry rates

JEL Classification: A1, C1, D4, L1, L5, L93

Suggested Citation

Gudmundsson, Sveinn Vidar and van Kranenburg, Hans, New Airline Entry Rates in Deregulated Air Transport Markets (2002). Gudmundsson, S. V. and Van Kranenburg, H., New Airline Entry Rates in Deregulated Air Transport Markets (2002). Transportation Research E: Logistics and Transportation Review, 38 (3-4), 205-219. Available at SSRN: https://ssrn.com/abstract=2458336

Sveinn Vidar Gudmundsson (Contact Author)

Toulouse Business School ( email )

20, bd Lascrosses
Toulouse, 31068
France

HOME PAGE: http://www.tbs-education.fr

Hans Van Kranenburg

Radboud University Nijmegen - Nijmegen School of Management ( email )

Thomas van Aquinostraat 3
P.O. Box 9108
Nijmegen, 6500HK
Netherlands

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