Is this project an undergraduate, graduate, or faculty project?
Graduate
group
What campus are you from?
Daytona Beach
Authors' Class Standing
Agathe Emeran, Graduate Portia Ani, Graduate Chinmay Datar, Graduate
Lead Presenter's Name
Agathe Emeran
Faculty Mentor Name
Li Zou
Abstract
The European airline market consists of both full-service and low-cost carriers, with major airline groups like International Airlines Group (IAG), Air France-KLM Group, Lufthansa Group, and Ryanair Group managing multiple subsidiaries to target diverse passenger segments and different regional markets. This project examines how these airline groups and their use of airline-in-airline strategy impact market concentration and competition on intra-European routes, with a focus on the Herfindahl-Hirschman Index (HHI) as a measure of market structure. Key research questions include the comparison of market concentration at national and regional levels, the influence of airline group subsidiaries on overall market share, and the role of airline-in-airline strategy in shaping market concentration on major intra-European routes. Data collected from DIIO and CAPA will be used for analyzing market share by flight capacity on overlapped vs. non-overlapped routes between legacy carriers and their low-cost subsidiaries from 2017 to 2023 covering both pre- and post-pandemic periods. The study aims to reveal how the market structure has evolved due to the formation of airline-in-airlines strategy and the growth of low-cost carriers, providing insights into the competitive dynamics of the European airline industry.
Did this research project receive funding support from the Office of Undergraduate Research.
No
Analysis of Airline-in-Airline Strategy and Market Concentration in Europe
The European airline market consists of both full-service and low-cost carriers, with major airline groups like International Airlines Group (IAG), Air France-KLM Group, Lufthansa Group, and Ryanair Group managing multiple subsidiaries to target diverse passenger segments and different regional markets. This project examines how these airline groups and their use of airline-in-airline strategy impact market concentration and competition on intra-European routes, with a focus on the Herfindahl-Hirschman Index (HHI) as a measure of market structure. Key research questions include the comparison of market concentration at national and regional levels, the influence of airline group subsidiaries on overall market share, and the role of airline-in-airline strategy in shaping market concentration on major intra-European routes. Data collected from DIIO and CAPA will be used for analyzing market share by flight capacity on overlapped vs. non-overlapped routes between legacy carriers and their low-cost subsidiaries from 2017 to 2023 covering both pre- and post-pandemic periods. The study aims to reveal how the market structure has evolved due to the formation of airline-in-airlines strategy and the growth of low-cost carriers, providing insights into the competitive dynamics of the European airline industry.