The Effect of Public Ownership and Deregulation in the Scandinavian Airline Industry

Trond Randøy*, Siri Pettersen Strandenes

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

We analyse why deregulation resulted in a temporary strong reduction in prices in Sweden, whereas in Norway the prices did not change significantly. SAS and Linjeflyg merged when the Swedish market was deregulated, whereas attempts to merge SAS and Braathens SAFE did not succeed. Upon deregulation in Sweden some of the carriers operating charter markets or regional secondary routes decided to enter the main routes. This put pressure on prices. Similar entries did not take place in the Norwegian market. We analyse whether the duopoly between SAS and Braathens SAFE is characterised by tacit collusion.

Original languageEnglish
JournalJournal of Air Transport Management
Volume3
Issue number4
Pages (from-to)211-215
Number of pages5
ISSN0969-6997
DOIs
Publication statusPublished - Oct 1997
Externally publishedYes

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