The Effects of Airline Strikes on Struck and Nonstruck Carriers

This study provides new evidence on the industrywide impact of strike by investigating how strikes have affected the values of struck and nonstruck airlines. Using stock market data for the years 1963-86, the authors show that most strikes adversely affected the value of struck airlines' stock, but enhanced the stock value of nonstruck carriers. The results also show that strikes before October 1978, which marked the end of strict regulation of the industry and of the employers' mutual aid pact, had some effects different from those of strikes after that date.

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	DeFusco, Richard A Professor Expertise: Financial Markets & Investing International Trade & Finance Finance CBA 230 P.O. Box 880490 University of Nebraska-Lincoln Lincoln, NE 68588-0490, USA Phone: (402) 472-6763 Fax: (402) 472-5140 rdefusco1@unl.edu	DeFusco, Richard A	Finance
	Fuess, Jr., Scott M Chair, Department of Economics Expertise: International - Asia International - Europe Labor Economics (wages, employment, working conditions, unions) Economics CBA 370 P.O. Box 880489 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-0336 or (402) 472-6281 Fax: (402) 472-9700 sfuess1@unl.edu	Fuess, Jr., Scott M	Economics