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Model agencies collude to fix rates

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Business regulation

Question

In 2015 a european based airline attempted a takeover of another, smaller, airline.

  1. What type of integration would this merger be an example of? (2)

  2. Outline the possible benefits of this merger. (6)

  3. Under what circumstances might competition regulators become involved in an airline merger? (8)

  4. What possible options are available to a regulator in terms of regulating this merger? (4)

  5. Evaluate alternative pricing strategies for a major international airline. (10)

  6. To what extent is the air travel market a contestable one? (relate this to a country of your choice).(10)


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