Date of Award
2015
Publisher
North Dakota State University
Document Type
Thesis
Degree Awarded
Master of Science (MS)
Program
Agribusiness and Applied Economics
Department
Agribusiness and Applied Economics
College
Agriculture, Food Systems and Natural Resources
Faculty Advisor
Lim, Siew H.
Description
I empirically examine the effects of bankruptcy protection (Chapter 11) on airfares in the U.S. domestic airline industry using cross sectional air tickets data from 2001:Q1 through 2012:Q4. A hedonic price model was developed to identify the determinants of airfares. The results indicate that, airfares charged by a bankrupt airline are approximately 4% lower than airfares of other airlines that are not in bankruptcy, ceteris paribus. Individually, bankrupt airlines lower their airfares as much as 16-19% during bankruptcy protection. Furthermore, it is evident that low cost carriers (LCCs) have significantly lower airfares than legacy carriers. This confirms the high degree of price competition in the industry.
Recommended Citation
Malalgoda, Narendra Dhananjaya Kumara, "Effect of Chapter 11 Bankruptcy Protection on Airfares in the U.S. Domestic Airline Industry" (2015). Agribusiness and Applied Economics. 150.
https://digitalcommons.ndsu.edu/agribusiness-applied-econ/150
Rights
NDSU policy 190.6.2
Rights Link
https://www.ndsu.edu/fileadmin/policy/190.pdf
Handle Identifier
https://hdl.handle.net/10365/27899