Measuring the impact of long-haul low-cost carriers on lowering fares: a quasi-experimental design to assess the pre-COVID market

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dc.contributor.authorMiyoshi, Chikage
dc.contributor.authorMolina-Prados, Jesus Rubio
dc.date.accessioned2023-08-14T10:09:14Z
dc.date.available2023-08-14T10:09:14Z
dc.date.issued2022-09-24
dc.description.abstractThis paper aims to investigate the impact of the introduction of the long-haul low cost carrier in the North Atlantic market to present the competitive situation before the COVID-19. There are a number of challenges in estimating the incremental effect of LH LCC. Therefore, several strategies were taken. Firstly, a difference in differences estimation and propensity score matched methods were employed using six major routes in the North Atlantic market with IATA's ticket sale data from January 2015 to December 2019; a granulated data to present the characteristics of flight and economy class fares. The outcomes indicate that a 17.2–20.6% fare reduction in average on the routes where Norwegian operated during 2015 and 2019 after Norwegian's entry, compared to what it would have happened if they didn't operate. It implies the LH LCC entry lowered fares significantly, and the level of fare competition in the North Atlantic market before the COVID-19 was high. In addition, a certain level of viability as an LH LCC has been implicated. This output can be used for the airline's strategic implication and the policy proposition, particularly when LCC expands the longer routes after the COVID recovery. Frequent and specific (detailed) assessments by market and period are imperative.en_UK
dc.identifier.citationMiyoshi C, Molina-Prados JR. (2022) Measuring the impact of long-haul low-cost carriers on lowering fares: a quasi-experimental design to assess the pre-COVID market. Transport Policy, Volume 128, November 2022, pp. 52-64en_UK
dc.identifier.issn0967-070X
dc.identifier.urihttps://doi.org/10.1016/j.tranpol.2022.09.007
dc.identifier.urihttps://dspace.lib.cranfield.ac.uk/handle/1826/20078
dc.language.isoenen_UK
dc.publisherElsevieren_UK
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectLong haul low cost carrieren_UK
dc.subjectDifference in difference methoden_UK
dc.subjectCausal inferenceen_UK
dc.subjectPropensity score matching methoden_UK
dc.subjectMarket recoveryen_UK
dc.titleMeasuring the impact of long-haul low-cost carriers on lowering fares: a quasi-experimental design to assess the pre-COVID marketen_UK
dc.typeArticleen_UK

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