Concentration in the airline industry: Evidence of economies of scale?

The early experience of the airline industry under deregulation was very much as expected, with increased competition and new entrants offering highly competitive rates. However, there are approximately 130 airlines operating today, and the industry remains more heavily concentrated than it was prior to deregulation. This study reports on concentration in the US airline industry between 1970 and 2009, as measured by the Hcrfindahl-Hirschman Index (HHI) and Concentration Ratio, together with changes in industry costs. The results show a trend of industry-wide reduced costs per available seat mile that is negatively correlated with the increased level of industry output over the last 30 years and increased concentration, which demonstrate the need for more research into the question of scale economies in air transportation.

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Economies of scale in the US airline industry after deregulation: a Fourier series approximation

Transportation Research Part E Logistics and Transportation Review ◽

10.1016/s1366-5545(00)00025-9 ◽

2001 ◽

Vol 37 (5) ◽

pp. 321-336 ◽

Cited By ~ 21

Author(s):

Michael Creel ◽

Montserrat Farell

Keyword(s):

Fourier Series ◽

Airline Industry ◽

Economies Of Scale ◽

Series Approximation ◽

The Us ◽

Fourier Series Approximation

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Marital Matching, Economies of Scale, and Intrahousehold Allocations

Review of Economics and Statistics ◽

10.1162/rest_a_00829 ◽

2020 ◽

Vol 102 (4) ◽

pp. 823-837

Author(s):

Laurens Cherchye ◽

Bram De Rock ◽

Khushboo Surana ◽

Frederic Vermeulen

Keyword(s):

Economies Of Scale ◽

Panel Study ◽

Scale Economies ◽

Preference Heterogeneity ◽

Income Dynamics ◽

Public And Private ◽

Preference Information ◽

The Public ◽

The Us ◽

Allocation Patterns

We propose a novel nonparametric method to empirically identify economies of scale in multiperson household consumption. We assume consumption technologies that define the public and private nature of expenditures through Barten scales. Our method (solely) exploits preference information revealed by a cross-section of household observations while accounting for fully unobserved preference heterogeneity. An application to data drawn from the US Panel Study of Income Dynamics shows that the method yields informative results on scale economies and intrahousehold allocation patterns. In addition, it allows us to define individual compensation schemes required to preserve the same consumption level in case of marriage dissolution or spousal death.

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Economies of scale in the US airline industry

Transportation Research Part E Logistics and Transportation Review ◽

10.1016/j.tre.2012.09.002 ◽

2013 ◽

Vol 51 ◽

pp. 95-108 ◽

Cited By ~ 12

Author(s):

Ahren Johnston ◽

John Ozment

Keyword(s):

Airline Industry ◽

Economies Of Scale ◽

The Us

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Tariffs and industrialization in late nineteenth century America: the role of scale economies

European Review of Economic History ◽

10.1093/erehj/heaa001 ◽

2020 ◽

Author(s):

Yeo Joon Yoon

Keyword(s):

Economies Of Scale ◽

Returns To Scale ◽

Scale Economies ◽

Learning By Doing ◽

Late Nineteenth Century ◽

Nineteenth Century America ◽

The Us ◽

Manufacturing Growth ◽

Constant Returns To Scale

Abstract I construct a general equilibrium model with economies of scale and learning-by-doing in manufacturing to quantify the effects of tariff that the US imposed on its manufacturing imports from 1870 to 1913. I find that the tariff positively contributes to US manufacturing growth, but the magnitudes are small. I also show that the cumulative welfare effect of the tariff is positive if there exists enough degree of learning-by-doing, a result contrary to the conventional wisdom that tariffs have welfare-deteriorating effects. The welfare-enhancing effect of the tariff disappears when I use a similarly constructed model, but with constant returns to scale in manufacturing. The result suggests that the assumption about technology is important for the welfare implication of the tariff.

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Possibility of Using in Russia the Experience of LED Lighting Application at the USA Airfields

Light & Engineering ◽

10.33383/2018-071 ◽

2019 ◽

pp. 71-77

Author(s):

Vladimir V. Vorozhikhin ◽

Eugenia L. Moreva ◽

Vladimir G. Starovoytov ◽

Igor G. Tyutyunnik

Keyword(s):

Air Transportation ◽

Improve Quality ◽

Led Lighting ◽

The Us ◽

The Usa ◽

Quality And Reliability ◽

Lighting Application

The purpose of this paper is an investigation of LEDs illumination experience at US-based aerodromes with an assessment of its feasibility and its necessity in Russia. The following methods were used: the analysis of aerodrome lighting requirements; the review and the analysis of development features in aerodrome LEDs illumination; the experience analysis of LEDs illumination of US-based aerodromes; the deductive analysis and the assessment synthesis of feasibility and necessity of US experience in LEDs illumination at Russian-based aerodromes. The following results were achieved: – The analysis of issues and opportunities was conducted for development of LEDs illumination at US-based aerodromes and of American experts’ recommendations for its use; – The cases were taken for use and assessment of development in LEDs illumination at US-based aerodromes; – The review and the analysis were conducted in relation to a developing market of LEDs illumination at Russian-based aerodromes. The main conclusion is that the US experience will improve quality and reliability of service provided in air transportation, comfort, and safety of Russian flights, as well as competitiveness of Russian- based airports and airlines (indirectly).

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