THE IMPACT OF CODE-SHARING ON AIRPORT DEVELOMENT: WHEN VOLATILITY TRANSLATES INTO TRAFFIC GROWTH

摘要

In line with the dramatic growth of code-sharing (c-s) alliances, a number of literaturesrnhave examined the effects of c-s alliances on fares, traffic demands and welfare. Thisrnpaper is concerned with c-s on US domestic routes and its competitive effects as analyzedrnin light of the Mutual Forebearance (MF) Theorem. The theorem depends on twornconflicting forces: familiarity between multi-point competitors versus credibility tornretaliate. Our methodology will seek to identify patterns in terms of volatility and growthrnamong airports depending on the different kinds of regimes and be largely based onrnexploratory data analysis (EDA). Going beyond the notion of c-s as a simple outsourcingrntool to reduce costs, we are highlighting their potential for becoming instrumental tornincumbents to influence volatility in network competition and thus to alter competitivernpressure. A model will be proposed that integrates both the distinct patterns of codesharedrnroutes that are reflected in domestic route development between airports as well asrninferences made from an application of the MF theorem to the specificities of increasedrncode-sharing in the US.