An Evaluation on the De-regulation of Mexico’s Airline Market

This paper is aimed at assessing the impact of deregulation initiatives on the recent performance of Mexico’s airline industry. By doing so, three econometric models are estimated with the view of differentiating the weights of deregulation variables from the ones of non-deregulation variables. The main statistical findings support the idea that deregulation in Mexico’s airlines: 1) has had only a marginal positive effect on the number of passengers; 2) has been no influential in establishing a definite competitive price structure in the market, and 3) has rendered insufficient benefits for improving competition conditions in the airline market.