The Regulatory Impact on Provided Quality in the Aviation Sector – A Quantitative Examination based on the Difference-in-Difference Method

Scheffler, Maximilian (2016) The Regulatory Impact on Provided Quality in the Aviation Sector – A Quantitative Examination based on the Difference-in-Difference Method. [Dissertation (University of Nottingham only)]

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Abstract

In 2005, EU rule 261/2004 was introduced in order to strengthen passenger rights in air-travel across Europe by imposing significant consumer compensation rights for inadequate services. This paper aims to examine the development after imposing this regulatory act by comparing the changes in punctuality as proxy for quality for affected (EU) and unaffected (non-EU) airlines. Statistical tests based on the difference-in-difference estimation reveal that affected airlines exhibit higher punctuality ratios in contrast to US airlines after the regulation was imposed. This effect is stronger for low-budget airlines, but weaker on competitive routes and during summertime. Non-US airlines increase their punctuality even more in contrast to airlines tied to the regulation.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Scheffler, Maximilian
Date Deposited: 10 Mar 2017 10:16
Last Modified: 13 Mar 2017 12:12
URI: http://eprints.nottingham.ac.uk/id/eprint/36144

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