Triggering competition in the Spanish airline market: The role of airport capacity and low-cost carriers

摘要

We analyze the influence of airport capacity increases and low-cost carriers entry onrnairline competition. Taking advantage of a rich sample of routes for the Spanish market, wernmake use of parametric and non-parametric techniques. Concerning capacity increases in largernairports, we find that airlines conduct is more competitive only in routes departing from nonhubrnairports. Also, we find that natural monopoly threshold decreases along time. Finally, lowcostrncarriers have a moderate but still significant effect on prices and provide a higher numberrnof alternatives to chose even in low-density routes.