Allowing airlines to form international alliances leads to lower fares for passengers who combine two aligned carriers in making an overseas trip, according to a new study led by the University of California, Irvine. But those traveling nonstop between international hubs may face higher costs due to lost competition from alliances, researchers found. “On the pricing side, alliances have both an upside and a downside,” said the study’s lead author, Jan Brueckner, UCI Distinguished Professor of economics.

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