| Title | The Impacts and Determining Features of Alliance Agreements by Low-Cost Airlines: Exploratory Analysis and Difference-in-Difference Analysis |
| Year | 2018 |
| Degree | Master |
| School | Department of Transportation Management Institute of Transportation Science, Tamkang University |
| Author | |
| Summary | Low-cost carriers (LCCs) have played an increasingly important role of the global air transportation industry. One current trend is that while international alliances among major airlines continue, some low-cost airlines have formed and some are now preparing for low-cost airline alliances. However, few researches have examined alliance practices by LCCs. This study presents an exploratory analysis related to the involvement of LCCs in alliance agreements. The characteristics of partnerships involving LCCs are discussed, and the determining features with regards to the alliance propensity of LCCs are identified. In addition, this study applies a difference-in-difference analysis on the revenue and traffic of codeshared LCCs and non-codeshared LCCs, across the pre- and post-alliance periods. The results of the probit model verified that alliance agreements are more likely to involve LCCs without single cabin nor point-to-point network structure. Southwest copycats are less likely to codeshare or and interline at the same time. Large size carriers are more likely to codeshare or interline. Moreover, in the DiD analysis, codesharing agreements did not improve the revenue of codeshared LCCs in the post-alliance period. The results of DiD analysis also found that codesharing agreements improve the revenue of codeshared airlines, due to passenger flow increase from the agreements. It is envisaged that the results of this study may shed light on low-cost airline alliance strategies and airline industry. |
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