What does this research mean for the field?

In the US airline industry, legacy carriers are less likely to enter new airport-pairs as their leverage increases, while low-cost carriers show little evidence of this relationship. Novelty: ClaimNovelty.NOVEL_FINDING. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

The aim is to explore the relationship between financial conditions and market entry for airlines.

February 28, 2026Journal of transport economics and policy

Entry Behaviour and Financial Distress: An Empirical Analysis of the US Domestic Airline Industry

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Authors

CLChia-Mei Liu

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Implication

Empirical analysis shows market entry varies by financial conditions in US airlines, suggesting strategic implications.

Key Points

The aim is to explore the relationship between financial conditions and market entry for airlines.
Empirical analysis using data from the top 500 airport-pairs in the US airline industry.
Data covers a period from 1993 to 2003.
Comparison of market entry behaviors between legacy carriers and low-cost carriers.
Legacy carriers are less likely to enter new markets when their leverage increases.
Minimal evidence found for low-cost carriers regarding the same relationship.

Cite This Study

Chia-Mei Liu (2009) studied this question.

synapsesocial.com/papers/69a286eb0a974eb0d3c02334 https://doi.org/10.3828/jtep.2009.43.2.237

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Entry Behaviour and Financial Distress: An Empirical Analysis of the US Domestic Airline Industry

Discussion

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Implication

Key Points

Cite This Study

Entry Behaviour and Financial Distress: An Empirical Analysis of the US Domestic Airline Industry

Discussion

Member takes

Implication

Key Points

Cite This Study

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