SEMINAR SERIES on ICTs POLICY RESEARCH
Professor Joan Calzada, University of Barcelona
Public Service Obligations in the Airline Market: Lessons from the Spanish Case
Tuesday, January 26th 2010 16:30pm
Room 5.09, 5th floor, North Tower, Instituto Superior Técnico, Portugal
Abstract:
We study the impact of the public service obligations applied in the Spanish airline market during the period 2001-09. Our analysis shows that routes benefiting of price discounts given to island residents exhibit higher prices but similar frequencies than the rest of routes. This can be explained by the effect of discounts on the demand elasticity, the airlines difficulties in acquiring new slots, and the high costs of increasing frequencies. Moreover, we show that price and frequency caps established in interisland flights lead to lower prices and higher frequencies than in unregulated routes with similar characteristics.
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Topic: SEMINAR SERIES on ICTs POLICY RESEARCH – Professor Joan Calzada, University of Barcelona, PUBLIC SERVICE OBLIGATIONS IN THE AIRL
Date: Tuesday, January 26, 2010
Time: 4:30 pm, GMT Time (London, GMT)
Meeting Number: 840 130 923
Meeting Password: EPP2010PhD
Host Key: 158815
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