Existence and effectiveness perceptions of exit-barrier factors in liberalised airline markets

Survey data are analysed that portray how route conditions that potentially deter exit are assessed by managers of airlines with their home base in one of four deregulated regions. The paper thereby provides answers to the following questions: (1) What are the conditions that potentially erect barriers to exit in airline markets? (2) How effective are existing conditions in deterring exit? Airline managers are of the opinion that conditions deterring exit generally exist. The conditions vary according to their perceived effectiveness, with strategic exit barriers being assessed as most effective. A taxonomy of exit conditions based on managerial perception is also provided.