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Market Exit of Air Berlin: An Analysis of Competitive Pricing on Domestic O&Ds in the German Market

Bingemer, Stephan and Grimme, Wolfgang and Maertens, Sven (2021) Market Exit of Air Berlin: An Analysis of Competitive Pricing on Domestic O&Ds in the German Market. Transportation Research Procedia, 52, pp. 420-427. Elsevier. doi: 10.1016/j.trpro.2021.01.049. ISSN 2352-1457.

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Official URL: https://www.sciencedirect.com/science/article/pii/S2352146521000909

Abstract

In autumn 2017, Air Berlin, the second biggest player in the German airline market, discontinued its operations due to bankruptcy. Prior to this, the struggling carrier had already been reducing its domestic capacities and adjusting its service patterns, which had impacts on the competitive situation for the remaining carriers on various domestic origin-destination (O&D) markets. This paper aims at identifying resulting changes of, e.g., the yields generated in intra-German air transport. In the German domestic market, the relevant competition per route can be narrowed down to a few players as opposed to continental or intercontinental flights. We found evidence that on 90% of the TOP20 O&Ds, representing 96% of the total passenger volume, revenue per pax (as an indicator for yield) increased. We found FRA-BER and MUC-BER – both O&Ds with intense Easyjet competition to be the only O&Ds that did not show an increase in price/yield after the market exit of Air Berlin.

Item URL in elib:https://elib.dlr.de/140761/
Document Type:Article
Title:Market Exit of Air Berlin: An Analysis of Competitive Pricing on Domestic O&Ds in the German Market
Authors:
AuthorsInstitution or Email of AuthorsAuthor's ORCID iD
Bingemer, StephanHochschule Heilbronnhttps://orcid.org/0000-0002-6303-2654
Grimme, Wolfgangwolfgang.grimme (at) dlr.dehttps://orcid.org/0000-0001-8498-6281
Maertens, SvenSven.Maertens (at) dlr.dehttps://orcid.org/0000-0002-4618-0946
Date:February 2021
Journal or Publication Title:Transportation Research Procedia
Refereed publication:Yes
Open Access:Yes
Gold Open Access:No
In SCOPUS:Yes
In ISI Web of Science:No
Volume:52
DOI :10.1016/j.trpro.2021.01.049
Page Range:pp. 420-427
Publisher:Elsevier
ISSN:2352-1457
Status:Published
Keywords:Airline pricing, airline competition, Air Berlin
HGF - Research field:Aeronautics, Space and Transport
HGF - Program:Aeronautics
HGF - Program Themes:Air Transportation and Impact
DLR - Research area:Aeronautics
DLR - Program:L AI - Air Transportation and Impact
DLR - Research theme (Project):L - Air Transport Operations and Impact Assessment
Location: Köln-Porz
Institutes and Institutions:Institute of Air Transport and Airport Research > Air Transport Economics
Deposited By: Grimme, Wolfgang
Deposited On:04 Feb 2021 14:09
Last Modified:04 Feb 2021 14:09

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