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An empirical model of airline fleet standardization in Brazil: Assessing the dynamic impacts of mergers with an events study

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Author(s):
Narcizo, Rodolfo R. ; Oliveira, Alessandro V. M. ; Dresner, Martin E.
Total Authors: 3
Document type: Journal article
Source: TRANSPORT POLICY; v. 97, p. 12-pg., 2020-10-01.
Abstract

This paper develops an empirical model to investigate the strategic fleet management practices in the air transport industry regarding airline fleet standardization (AFS). We conduct an econometric analysis of the key drivers of AFS in Brazil and study the dynamic effects of five merger events. We find evidence of a significant drop in AFS following most of the consolidations, which is gradually reversed during the post-merger integration efforts. Additionally, except for the major full-service carrier, all other airlines had an estimated overall trend toward more intense fleet standardization over the entire period, revealing a stronger preference for seeking cost competitiveness over market opportunity when facing competition in the market. (AU)

FAPESP's process: 15/19444-1 - Airline emission charges: an econometric model to investigate their potential effects on the Brazilian air transport industry
Grantee:Alessandro Vinícius Marques de Oliveira
Support Opportunities: Regular Research Grants
FAPESP's process: 13/14914-4 - Empirical assessment of competitive impacts of regulatory rules of airport slots redistribution
Grantee:Alessandro Vinícius Marques de Oliveira
Support Opportunities: Regular Research Grants