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Deregulation of The Norwegian Air Transport Market

Authors: Jon Inge Lian
Report nr: 322/1996
ISBN: 82-7133-968-0
Language: Norwegian

On 1 April 1994 the main Norwegian air routes were deregulated. Seat capasity has increased approx. 50 % on 6 competition routes while only minor adjustments have been made on other routes. SAS and Braathens SAFE have increased capasity on routes where they were weak or had no supply before deregulation. Both airlines had a substantial surplus in 1994 and 1995. Nominal prices have increased 3 - 4 % after deregulation. The tendency towards more discount fares seem to have flattened, mainly due to a strong increase in business travel demand.


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