Trends in European Airline Markets: Competition, Concentration and Strategic Behaviour
- Cristina BarbotFaculdade de Economia do Porto, CETE, Portugal
- Journal
- Journal of the Brazilian Air Transportation Research Society (JBATS) · ISSN 1808-3331
- Edition
- v. 2, n. 2, 2006 · pp. 49-62
- Editor-in-chief
- João Batista Camargo Jr. (Escola Politécnica, Universidade de São Paulo)
- Guest editors
- Li Weigang (Universidade de Brasília); Alexandre de Barros (University of Calgary, Canada)
Abstract
Alamdari and Mason (2006) present a scenario for the European Airlines industry structure for 2010-2015. This scenario displays a high market concentration both in the LCC (low cost carriers) segment and the FSC (full service carriers) segment and goes against what had been intended in terms of deregulation. This paper analyses possible paths towards such a scenario, by means of theoretical considerations and recent trends in several European airlines, and with focus on the strategic behavior of LCCs and its implications to market concentration. We analyze the role of Portuguese and Brazilian airlines in the context of the referred scenario. We conclude that concentration in the low cost segment is more likely to occur than in the large network carriers segment.