ABSTRACT
Excess capacity and low returns have led to consolidation and mergers in the airline market. The joining of KLM and Air France within the SkyTeam alliance has been the most dramatic of these events. This paper looks at the probable effects of the merger on the various players that are immediately affected; airports, airlines and travelers. It does this using the AIR Transport Network Competition Model. The analysis finds, in particular, that fears that Schiphol may lose out as a result of the merger may be exaggerated, especially when high-speed rail is added to the mix of modes considered.
