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An econometric air travel demand model for the entire conventional domestic network: The case of Norway

Author

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  • Fridström, Lasse
  • Thune-Larsen, Harald

Abstract

A direct demand intercity gravity model has been developed with the purpose of forecasting air traffic volumes on the entire conventional Norwegian network. The model has been calibrated econometrically using combined cross-sectional and time series data on traffic flows, fares, travel time, income, and population. Fares and travel time are taken into account for air travel as well as for the fastest surface means of mass transportation. Medium- and long-term elasticities are derived and have the expected sign and order of magnitude,with one disturbing exception.

Suggested Citation

  • Fridström, Lasse & Thune-Larsen, Harald, 1989. "An econometric air travel demand model for the entire conventional domestic network: The case of Norway," Transportation Research Part B: Methodological, Elsevier, vol. 23(3), pages 213-223, June.
    • Handle: RePEc:eee:transb:v:23:y:1989:i:3:p:213-223
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    Cited by:

    1. Vicente Aprigliano Fernandes & Ricardo Rodrigues Pacheco & Elton Fernandes & Manoela Cabo & Rodrigo V. Ventura, 2022. "A Regional View of Passenger Air Link Evolution in Brazil," Sustainability, MDPI, vol. 14(12), pages 1-16, June.
    2. Dobruszkes, Frédéric & Vandermotten, Christian, 2022. "Do scale and the type of markets matter? Revisiting the determinants of passenger air services worldwide," Journal of Air Transport Management, Elsevier, vol. 99(C).
    3. Wei, Wenbin & Hansen, Mark, 2006. "An aggregate demand model for air passenger traffic in the hub-and-spoke network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(10), pages 841-851, December.
    4. Boonekamp, Thijs & Zuidberg, Joost & Burghouwt, Guillaume, 2018. "Determinants of air travel demand: The role of low-cost carriers, ethnic links and aviation-dependent employment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 18-28.
    5. Kinene, Alan & Granberg, Tobias Andersson & Polishchuk, Valentin & Rydergren, Clas, 2020. "Decision Support for an Optimal Choice of Subsidised Routes in Air Transportation," Journal of Air Transport Management, Elsevier, vol. 82(C).
    6. Frédéric Dobruszkes & Christian Vandermotten, 2022. "Do scale and the type of markets matter? Revisiting the determinants of passenger air services worldwide," ULB Institutional Repository 2013/336304, ULB -- Universite Libre de Bruxelles.
    7. Fildes, Robert & Wei, Yingqi & Ismail, Suzilah, 2011. "Evaluating the forecasting performance of econometric models of air passenger traffic flows using multiple error measures," International Journal of Forecasting, Elsevier, vol. 27(3), pages 902-922, July.
    8. Sibdari, Soheil & Mohammadian, Iman & Pyke, David F., 2018. "On the impact of jet fuel cost on airlines’ capacity choice: Evidence from the U.S. domestic markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 1-17.
    9. Mohammadian, Iman & Abareshi, Ahmad & Abbasi, Babak & Goh, Mark, 2019. "Airline capacity decisions under supply-demand equilibrium of Australia’s domestic aviation market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 108-121.
    10. Hakim, Md Mahbubul & Merkert, Rico, 2019. "Econometric evidence on the determinants of air transport in South Asian countries," Transport Policy, Elsevier, vol. 83(C), pages 120-126.
    11. Alexander, David W. & Merkert, Rico, 2017. "Challenges to domestic air freight in Australia: Evaluating air traffic markets with gravity modelling," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 41-52.
    12. Kremers, Hans & Nijkamp, Peter & Rietveld, Piet, 2002. "A meta-analysis of price elasticities of transport demand in a general equilibrium framework," Economic Modelling, Elsevier, vol. 19(3), pages 463-485, May.
    13. Lu, Cherie, 2009. "The implications of environmental costs on air passenger demand for different airline business models," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 158-165.

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