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Code sharing,joint fares,and competition in the regional airline industry
Institution:1. Georgia Institute of Technology, School of Economics, 221 Bobby Dodd Way, Atlanta, GA, 30332, USA;3. Georgia Institute of Technology, School of Civil and Environmental Engineering, 790 Atlantic Drive, Atlanta, GA, 30332-0355, USA;4. Georgia Institute of Technology, Daniel Guggenheim School of Aerospace Engineering, Atlanta, GA, 30332-0150, USA;5. Transport and Mobility Laboratory, School of Architecture, Civil and Environmental Ecole Polytechnique Fédérale de Lausanne Engineering, CH-1015, Lausanne, Switzerland;1. School of General Engineering, Beihang University, 100191 Beijing, China;2. School of Electronic and Information Engineering, Beihang University, 100191 Beijing, China
Abstract:In the wake of airline deregulation, virtually all large jet carriers have entered into cooperative marketing agreements that involve shared designator codes and joint fares with commuter airlines. This paper examines the development of these agreements, the role they play in the competitive strategies of major and commuter airlines. and the implications of these agreements for the structure of the airline industry and for service to travelers to and from small communities.
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