Table 4.

Effects of horizontal M&As on the cost structure^a,b,c,d.

		One-Year Loss		Three-Year Loss
Variables	Base Model	Loss Model	Profit Model	Loss Model	Profit Model
Constant	3738** (1240)	3757** (1371)	3452 (3812)	3191* (1522)	2785 (2040)
δ1- Fixed Cost Variation (million $)	724.8** (258.0)	877.8*** (315.3)	−291.7 (494.7)	327.5 (456.4)	658.5 (339.3)
δ2 - Variable Cost variation -($ per ASM)	−0.008*** (0.002)	−0.01*** (0.002)	0.007 (0.005)	−0.009*** (0.002)	−0.005 (0.003)
Adjusted R2	0.90	0.91	0.86	0.89	0.90
	n = 206	n = 151	n = 55	n = 78	n = 128

*p < 0.05, **p < 0.01, ***p < 0.001.

^aDependent variable = total costs.

^bFixed-effect estimation.

^CStandard rrors are reported in parenthesis.

^dAvg. VIF = 1.82 (range 1.02–2.88).