Analysis of increasing competition in the civil aviation market with aview to consumer well-being

Authors

DOI:

https://doi.org/10.1590/1980-53575521jrjmp

Keywords:

Civil aviation, Market concentration, HHI (Herfindahl-Hirschman Index), Consumer surplus

Abstract

The Brazilian civil aviation sector has unique characteristics compared to other economic sectors, including a distinct regulatory framework. Among the responsibilities of the National Civil Aviation Agency (ANAC) is the allocation of slots, which are time windows allocated for takeoff or landing operations at airports. This study examines whether a less concentrated distribution of slots, promoting greater competition, can reduce airfare prices, increase the number of passengers, and optimize the distribution of the Brazilian air network. Using an econometric fixed-effects model accounting for month, year, and operator, the impact of slot concentration, measured by the Herfindahl-Hirschman Index (HHI), on prices and passenger numbers was evaluated. The findings indicate that higher slot concentration among incumbent operators is associated with increased average fares and a decrease in the number of passengers transported, which is undesirable.

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Published

11-06-2025

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Articles

How to Cite

Amaral Júnior, J. B. C. A., Pieri, R. G. D., Sampaio, J. O. Úbida, Toda, M. ., & Souza, P. O. (2025). Analysis of increasing competition in the civil aviation market with aview to consumer well-being. Estudos Econômicos (São Paulo), 55(2), e53575521. https://doi.org/10.1590/1980-53575521jrjmp