María Pilar Socorro Quevedo, María Fernanda Viecens
High speed trains (HSTs) and airlines have been usually considered as alternative modes of transport in competition with each other. Although competition is generally welfare enhancing, the integration of airlines and HSTs may be profitable from the social point of view. In this paper we analyze the environmental and social effects of airline and HST integration in two different scenarios. On the one hand, we consider airports with capacity restrictions. On the other hand, we consider airports with low competition between airlines. In both cases, we show that airline and HST integration is always privately profitable, while it may be also profitable from the environmental and/or social perspective.
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