The effect of cross-country differences on low-cost carriers’ market presence : A Panel Data Study
Keywords
Loading...
Authors
Issue Date
2014-09-28
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The development of low-cost carriers has taken a dramatic shift in the past decades. One of
the most fundamental arguments for the emergence of low-cost carriers in Europe is the
liberalisation of its aviation industry. This research investigates what variables are important
for low-cost carriers entering a new market. By means of a random effects panel data analysis,
this research investigated 36 countries in the European Common Aviation Area in a time
period from 2004-2012. This study investigates what institutional and market characteristics
are important in respectively entering a country and an airport. The results show that low-cost
carrier market share is positively correlated with EU/ECAA membership, the number of
Internet users, and catchment area. Additionally, this research has also found a negative
relation between low-cost carrier market share and ‘voice and accountability’, ‘control of
corruption’, and competition.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen