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Airline Deregulation and Airline Economics

Airline Deregulation and Airline Economics. Airports you have known?. References. Gillen, D. “Airline Business Models and Networks” Review of Network Economics, 2006. Outline. History of Regulation and Deregulation in Airlines The evolution of Hub and Spoke Networks

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Airline Deregulation and Airline Economics

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  1. Airline Deregulation and Airline Economics

  2. Airports you have known?

  3. References • Gillen, D. “Airline Business Models and Networks” Review of Network Economics, 2006.

  4. Outline • History of Regulation and Deregulation in Airlines • The evolution of Hub and Spoke Networks • Computer Reservation Systems, Frequent Flyer Plans • The emergence of the Low Cost Carrier as the “21st century business model” • Predatory pricing in Airlines

  5. The LCC Advantage

  6. Sources of Cost Advantage • Labour costs • Sales and Reservations (internet) • Maintenance costs

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