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
Date Written: 2002
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: Suggested Citation