Comparative Study of Transaction Costs between Us and Brazilian Airlines

Abstract

This article deals with the transaction costs in the passenger and cargo air transport sector for United States and Brazilian airlines. After discussing transaction costs and their importance, a comparative study is conducted on their relevance for companies in these two countries. The study concludes that transaction costs for Brazilian airlines are proportionally about five times higher than those for US airlines. Finally, simulations are performed for the economic operating results of airlines from both countries if their transaction costs were zero.