Premium
Pricing of Regional Airline Services in Australia and New Zealand, 2011–2015
Author(s) -
Gillen David,
Hazledine Tim
Publication year - 2016
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12133
Subject(s) - competition (biology) , business , industrial organization , economics , ecology , biology
We analyse more than 9500 airfares offered on Eastern Australia and New Zealand regional routes – those linking towns and smaller cities to main trunk cities and/or to each other – with around 2000 main trunk airfares as comparators, in 2011, 2013, 2014 and 2015. We are able to successfully estimate a well‐specified pricing model, which shows strong effects of competition on fares, quite substantial intertemporal price discrimination effected by various customer‐separating devices, and few systematic differences between regional and main trunk route pricing. Airfares are more expensive in Australia.