Optimal air service agreements: a theoretical model
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Date
1995-02
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Latrobe University
Abstract
Air service agreements are negotiated bilateral agreements defining nation's permitted passenger carrying capacity between origin and endpoint nodes on particular international air routes, This study examines the determination of economically optimal (rent-maximising) agreements under various demand and bargaining assumptions. The role of marketing and 'downstream' inter industry effects are accounted for and numerical examples of optimal agreements given.
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Optimal air service agreements