New Working Paper: Can Regulation Improve Service Quality?

Under EU Air Passenger Rights legislation (“EC261”), carriers must provide assistance and cash compensation to passengers in case of long delay.

This new EUI Working Paper by Hinnerk Gnutzmann and Piotr Śpiewanowski studies whether the regulation reduces flight delay. EC261 applies uniformly to flights departing from the EU, but covers only EU carriers on EU–bound flights. Exploiting this variation, we find that regulated flights are 5% more likely to arrive on time, and mean arrival delay is reduced by almost four minutes. The effect is strongest on routes with little competition, and for legacy carriers. Thus, consumer rights can improve quality when incentives from competition are weak.

DOWNLOAD THE PAPER ON CADMUS


More on Air

Air
Operating Aid for Airports beyond 2024
Operating Aid for Airports beyond 2024

This article by Bastiaan de Bruijne, General Counsel at the Airports Council International Europe, originally appeared in the European Transport Regulation Observer…

Air
Time for the great SAF Rush
Time for the great SAF Rush

This article by Niamh McCarthy, Head of Competition Law at International Airlines Group (IAG), originally appeared in the European Transport Regulation Observer…

Air
New remedies in airline mergers: a distribution perspective
New remedies in airline mergers: a distribution perspective

This article by Emmanuel Mounier, Secretary General of eu travel tech, originally appeared in the European Transport Regulation Observer “Short-…

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top