Spillover Effects of Sanctions on Airlines

To counter the escalating threat of direct conflict with rogue nations, the use of sanctions packages has become a preferred tactical response. However, although targeted, there are significantly elevated spillover effects that can generate sectoral damage. While the literature on sanctions has focu...

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Main Authors: Corbet, S., Nicolau, J.L., Oxley, Leslie
Format: Journal Article
Published: 2025
Online Access:http://hdl.handle.net/20.500.11937/97466
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author Corbet, S.
Nicolau, J.L.
Oxley, Leslie
author_facet Corbet, S.
Nicolau, J.L.
Oxley, Leslie
author_sort Corbet, S.
building Curtin Institutional Repository
collection Online Access
description To counter the escalating threat of direct conflict with rogue nations, the use of sanctions packages has become a preferred tactical response. However, although targeted, there are significantly elevated spillover effects that can generate sectoral damage. While the literature on sanctions has focused on analyzing the effectiveness and the impact on the sanctioned and sanctioning country, spillover effects have not been addressed in the tourism and travel industry. Based on behavioral decision theory and modern portfolio theory, this study states hypotheses and confronts two potential results derived from each theory regarding the way negative consequences of sanctions spill over into airlines. Using the aviation sanctions packages derived from the Russia-Ukraine war in 2022 in different regions worldwide, the results indicate greater spillovers flow into airlines than other aviation-related corporations, into big firms than small firms, and with significant differential effects on each analyzed region.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-974662025-04-16T02:59:11Z Spillover Effects of Sanctions on Airlines Corbet, S. Nicolau, J.L. Oxley, Leslie To counter the escalating threat of direct conflict with rogue nations, the use of sanctions packages has become a preferred tactical response. However, although targeted, there are significantly elevated spillover effects that can generate sectoral damage. While the literature on sanctions has focused on analyzing the effectiveness and the impact on the sanctioned and sanctioning country, spillover effects have not been addressed in the tourism and travel industry. Based on behavioral decision theory and modern portfolio theory, this study states hypotheses and confronts two potential results derived from each theory regarding the way negative consequences of sanctions spill over into airlines. Using the aviation sanctions packages derived from the Russia-Ukraine war in 2022 in different regions worldwide, the results indicate greater spillovers flow into airlines than other aviation-related corporations, into big firms than small firms, and with significant differential effects on each analyzed region. 2025 Journal Article http://hdl.handle.net/20.500.11937/97466 10.1177/00472875231210977 unknown
spellingShingle Corbet, S.
Nicolau, J.L.
Oxley, Leslie
Spillover Effects of Sanctions on Airlines
title Spillover Effects of Sanctions on Airlines
title_full Spillover Effects of Sanctions on Airlines
title_fullStr Spillover Effects of Sanctions on Airlines
title_full_unstemmed Spillover Effects of Sanctions on Airlines
title_short Spillover Effects of Sanctions on Airlines
title_sort spillover effects of sanctions on airlines
url http://hdl.handle.net/20.500.11937/97466