Agradecimentos: The authors wish to thank the Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP) - grants n. 2013/14914-4 and2015-19444-1; the National Council for Scientific and Technological Development (CNPq) - grant n. 301654/2013-1; and CAPESInstitutional Postgraduate degree funding. They also wish to thank Cláudio Jorge P. Alves, Carlos Müller, Rogéria Arantes, FredericoTurolla, Wellington Costa, the Associate Editor and two anonymous reviewers. All of the mistakes are ours Ver menos

Abstract: We empirically investigate the capacity responses of major incumbent airlines facing the entry of a new low cost carrier in a secondary airport of a multiple airports region. We develop an empirical model that allows for time-varying strategic responses, aiming at identifying possible degrees of route entry threat. We consider the case of the entry of Azul Airlines in the densest conurbation in Brazil. Our results suggest that the incumbents preemptively fortified their flight frequency positions on threatened routes to deter the anticipated march of the newcomer from the secondary airport toward the existing primary airports Ver menos