The Frontier and Spirit Effect: Analyzing the Effects of the Entry of Ultra-Low Cost Carriers on the Airfares of Incumbent Airlines in the United States
Abstract/Contents
- Abstract
- Following the consolidation of airlines in the United States in the past fifteen years, the decrease in competition has created room for new players in markets traditionally dominated by legacy carriers like American, Delta, and United. While ultra-low-cost carriers (ULCC) have thrived in regions like Europe and Southeast Asia, the ultra-low-cost model is still developing, albeit at an extremely rapid pace, in the United States. In this paper, I employ a difference-in-differences approach on markets that have experienced the new entry of a ULCC from 2013 to 2017. I estimate the effect of ULCC entry on incumbent carrier airfares as a whole, as well as how individual incumbent carriers responded differently to new ULCC entry. Additionally, I also examine whether the response differed based on the entering ULCC.
Description
| Type of resource | text |
|---|---|
| Date created | May 3, 2019 |
Creators/Contributors
| Author | Chi, Greg | |
|---|---|---|
| Degree granting institution | Stanford University, Department of Economics | |
| Primary advisor | Larsen, Brad |
Subjects
| Subject | ULCC |
|---|---|
| Subject | LCC |
| Subject | ultra-low cost carriers |
| Subject | low cost carriers |
| Subject | legacies |
| Subject | airfare shocks |
| Subject | airfares |
| Subject | ancillary fees |
| Subject | Spirit |
| Subject | Frontier |
| Subject | Allegiant |
| Subject | Ryanair |
| Subject | Southwest Effect |
| Subject | Department of Economics |
| Genre | Thesis |
Bibliographic information
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- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
Preferred citation
- Preferred Citation
- Chi, Greg. (2019). The Frontier and Spirit Effect: Analyzing the Effects of the Entry of Ultra-Low Cost Carriers on the Airfares of Incumbent Airlines in the United States. Stanford Digital Repository. Available at: https://purl.stanford.edu/fh598yh7756
Collection
Stanford University, Department of Economics, Honors Theses
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- Contact
- gregchi@alumni.stanford.edu
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