[PDF] EX POST ANALYSIS OF AIR NEW ZEALAND REVENUE-SHARING

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EX POST

American Economic ReviewReview of Economics and

StatisticsJournal of Law & EconomicsInternational Journal of Industrial Organization

The Journal of Law & EconomicsJournal of

Labor EconomicsEconomics of TransportationJournal of Competition Law & Economics

Advances in Airline Economics

Economics

of TransportationJournal of Competition Law & EconomicsReview of Industrial Organization

Journal of Economic and Management & Strategy

i.Ex Post Empirical Analysis of Air NZ's JVs on Fares ................................................... 5

ii.The Importance of JVs to Air New Zealand and New Zealand's Economy .................... 6

i.Theoretical Underpinnings ........................................................................................... 15

ii.Review of Empirical Literature .................................................................................... 16

i.Virgin Australia ............................................................................................................ 21

ii.Cathay Pacific/Dragonair ............................................................................................ 23

iii.Singapore Airlines ........................................................................................................ 24

iv.Air China ...................................................................................................................... 25

v.United Airlines .............................................................................................................. 26

EX POST

i.Non-Tasman Connecting Markets ................................................................................ 30

ii.Trans-Tasman Connecting Markets ............................................................................. 34

iii.Breakdown by Connecting Fare Classes ...................................................................... 35

i.Non-Tasman Nonstop Markets ..................................................................................... 40

ii.Trans-Tasman Nonstop Markets .................................................................................. 42

iii.Breakdown by Nonstop Fare Classes ........................................................................... 43

iv.Implications of Non-Stop Regressions .......................................................................... 45

i.Overview of the Market for International Passenger Airline Service to/from New

Zealand .................................................................................................................................. 49

ii.Air New Zealand's Competitive Position in the Evolving Global Airline Industry ...... 57 i.Air NZ's JVs Have Resulted in More Convenient Schedules for New Zealand Travelers

...................................................................................................................................... 66

ii.Air NZ's JVs Have Created New, Metal-Neutral Service for Passengers Traveling in

Thousands of Connecting City-Pairs .................................................................................... 69

iii.Access to Lower Fares Because of Metal-Neutral Fare Combinability ....................... 70 iv.By Harmonizing In-Flight Service Levels and Frequent Flyer Plan Benefits Between

Partners, Air NZ's JVs Provide Additional Benefits to Passengers ...................................... 71

i.Air NZ's JVs Help to Support the Carrier's Domestic Services ................................... 75

ii.Given Its Small Local Market, New Zealand Can Only Support One Long-Haul

International Gateway ........................................................................................................... 79

iii.By Enabling Air NZ to Offer Higher Quality and Lower Priced Service Between New Zealand and Scores of Additional Destinations, JVs Help Stimulate Tourism and Other

Economic Economy Activity Within New Zealand ................................................................ 81

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