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Air services on thin routes: Regional versus low-cost airlines

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  • Fageda, Xavier
  • Flores-Fillol, Ricardo

Abstract

An examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes – regional jet technology and the low-cost business model – reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies).

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 42 (2012)
Issue (Month): 4 ()
Pages: 702-714

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Handle: RePEc:eee:regeco:v:42:y:2012:i:4:p:702-714

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: Air transportation; Regional jet technology; Low-cost business model; Thin markets;

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References

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