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

Trond Randøy; Siri Pettersen Strandenes

doi:10.1016/S0969-6997(97)00028-8

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 journal › Journal article › Research › peer-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 language	English
Journal	Journal of Air Transport Management
Volume	3
Issue number	4
Pages (from-to)	211-215
Number of pages	5
ISSN	0969-6997
DOIs	https://doi.org/10.1016/S0969-6997(97)00028-8
Publication status	Published - Oct 1997
Externally published	Yes

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title = "The Effect of Public Ownership and Deregulation in the Scandinavian Airline Industry",

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.",

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AB - 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.

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