Preliminary observations on the deregulation in the Philippine domestic airline industry
Date
1997-03
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Abstract
This paper provides preliminary observations on the deregulation of the Philippine domestic airline industry. To serve as a guide for the discussion, a basic monopoly model is presented with an illustration of the workings of demand elasticities in the residual demand curve. Together with this are the economics that determine quality of service, routes, and safety. Next comes a discussion of the experience of the United States regarding the deregulation of their own domestic airline industry to serve as a backdrop of our discussion on current development in the Philippine domestic airline industry. For the Philippine case,la few methods for studying the impact of deregulation used in the U.S.are adapted. The paper ends with the view that basically, fares will continue to go down. Suggestions for further government actions are given.
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Keywords
Preliminary Observations, Deregulation, Domestic Airline Industry