The market valuation of new route announcements

Dung-Chun Tsai, Shao-Chi Chang, Wei Wei Chen, Chau lan Tran

研究成果: Article同行評審

6 引文 斯高帕斯(Scopus)


Making use of event-study methodology, we assess how a new route announcement affects an airline's stock market value. In addition, it verifies that route strategy and entry strategy contribute to the direction and magnitude of the stock market reaction. With respect to route strategy, both opening a new domestic route and announcing multiple new routes achieve the greater financial gain. There are first mover advantages, whereby early entrants gain more than later entrants. Additionally, a price-discounting strategy contributes to market value. Airlines carrying out specific expansion activities (e.g., aircraft purchases or crew recruiting) have a high the potential for high profits. However, airlines do not benefit from developing alliances to acquire new routes.

頁(從 - 到)252-256
期刊Journal of Air Transport Management
出版狀態Published - 2008 9月 1

All Science Journal Classification (ASJC) codes

  • 運輸
  • 策略與管理
  • 管理、監督、政策法律
  • 法律


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