A retrospective analysis of the effects of airline mergers on China Eastern's 'lifeline' routes: a difference-in-differences approach
Article
Article Title | A retrospective analysis of the effects of airline mergers on China Eastern's 'lifeline' routes: a difference-in-differences approach |
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ERA Journal ID | 18447 |
Article Category | Article |
Authors | |
Author | Zhang, Yahua |
Journal Title | Journal of the Asia Pacific Economy |
Journal Citation | 17 (3), pp. 464-475 |
Number of Pages | 12 |
Year | 2012 |
Place of Publication | Abingdon, Oxon. United Kingdom |
ISSN | 1354-7860 |
1469-9648 | |
Digital Object Identifier (DOI) | https://doi.org/10.1080/13547860.2012.694701 |
Web Address (URL) | http://www.tandfonline.com/doi/abs/10.1080/13547860.2012.694701 |
Abstract | We have seen a wave of mega airline mergers in the past few years including Air France/KLM, Delta/Northwest (NW) and United/Continental. However, literature examining the post-merger effects remains sparse. Using a difference-in-differences (DD) approach, this study examines the airfares on China Eastern's three 'lifeline' routes, Shanghai-Beijing, Shanghai-Guangzhou and Shanghai-Shenzhen, after the 2002 airline mergers that eliminated six state-owned airlines and resulted in three large airline groups. Passengers on these important routes seem to have not been adversely impacted, and even in 2007, the airfares were not significantly higher than that of the 2002 level despite the rise in fuel price, which may provide some evidence to support the 2009 merger between China Eastern and Shanghai Airlines and justify a lenient anti-trust treatment of mergers in China's airline industry. Retrospectively examining the actual effects of consummated mergers in China including this research has significant policy implications for the new Anti-Monopoly Law enforcement agencies that have little experience and knowledge in dealing with airline mergers and alliances at this stage. |
Keywords | airline merger; anti-trust; business routes; China eastern; tourist routes |
ANZSRC Field of Research 2020 | 350610. Pricing (incl. consumer value estimation) |
350901. Air transportation and freight services | |
380109. Industry economics and industrial organisation | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Accounting, Economics and Finance |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q17x9/a-retrospective-analysis-of-the-effects-of-airline-mergers-on-china-eastern-s-lifeline-routes-a-difference-in-differences-approach
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