Competition structure and price strategy in the brazilian aviation market

• Autor(a) principal: Souza, Thiago Cavalcante de
• Data de Publicação: 2019
• Outros Autores: Andrade, Sarah Farias de, Cavalcante, Aniram Lins
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: RACE (Joaçaba. Online)
• DOI: 10.18593/race.16444
• Texto Completo: https://periodicos.unoesc.edu.br/race/article/view/16444
• topic: Airports; Aviation; Concentration; Prices; Transportation; Aeroportos; Aviação; Concentração; Preços; Transporte

This paper analyzes the competition pattern, prices and market structure of the Brazilian civil aviation market, taking as reference a supply and demand of seats on the domestic road. The concentration indicators CRN (4...8) and the Herfindahl-Hirschman Index (HHI) are used as methodological procedures. The Averag Movente Integrated Autoregressive Model was adopted to perform a seasonal analysis of the tariff prices. The results show that a small group of airlines, signaling an oligopoly market. In view of the oligopolistic structure, it was observed that the firms' competition strategies are associated with the expansion of the supply and passenger capacity, often evidenced by the concentration of the air network and increases in the central airport lanes. The analysis of seasonality showed a greater effect on the series of tariffs for the months of July and March. An analysis of the intervention carried out pointed out the month of July 2010 as a significant point, when ANAC's quality control Resolution comes into effect, suggesting that government regulation exerts influence on the adaptive strategies of firms.