Privatization and efficiency: industry effects of the sale of British Airways
Article Abstract:
The case of British Airways was used to examine the impact of privatization on corporate performance. The study focused on the effects of the sale on airfares and on the stock prices of US airlines, British Airway's close rivals in the international markets. Findings indicate that the privatization announcement was followed by an abnormal decline in the stock prices of US airlines. In addition, it was found that price decreases were commensurate to the degree to which they competed with British Airways. The results suggest that the US carriers expect tougher competition from a more efficient British Airways.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1997
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Airline mergers and multimarket contact
Article Abstract:
The concept of multimarket contact holds that companies competing in a number of markets eventually become interdependent and compete less aggressively. Its impact is tested in the airline industry using data on airline pricing behavior around mergers that took place between 1985 and 1988. Findings indicate that airfares are significantly influenced by changes in concentration, which is a measure of within-the-market contact, and by changes in multimarket contact, which serves as a measure of outside-the-market contact.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1996
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The international drivers of domestic airline mergers in twenty nations: integrating industrial organization and international business
Article Abstract:
The impact of global economic conditions on mergers in airline sector, during 1990s, is examined.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 2006
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