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Flight cancellations and airline alliances: Empirical evidence from Europe

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  • Alderighi, Marco
  • Gaggero, Alberto A.

Abstract

We show that participating in an airline global alliance significantly increases the likelihood of canceling a flight: an airline is more prone to cancel a flight once it can rely on its partners’ network. Alliance membership increases the value of the airline’s own network, enlarges route and hub dominance, and simplifies the re-routing of stranded passengers. Since flight cancellation may be affected by carriers’ behavior, the frequency of cancellations and their implied inconveniences to consumers should be taken into consideration by regulatory authorities.

Suggested Citation

  • Alderighi, Marco & Gaggero, Alberto A., 2018. "Flight cancellations and airline alliances: Empirical evidence from Europe," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 90-101.
  • Handle: RePEc:eee:transe:v:116:y:2018:i:c:p:90-101
    DOI: 10.1016/j.tre.2018.05.008
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    2. Narcizo, Rodolfo R. & Oliveira, Alessandro V.M. & Dresner, Martin E., 2020. "An empirical model of airline fleet standardization in Brazil: Assessing the dynamic impacts of mergers with an events study," Transport Policy, Elsevier, vol. 97(C), pages 149-160.
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    4. Branko Bubalo, 2021. "Airport Capacity and Performance in Europe -- A study of transport economics, service quality and sustainability," Papers 2102.02379, arXiv.org.
    5. Bubalo, Branko, 2021. "Airport Capacity and Performance in Europe - A study of transport economics, service quality and sustainability," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 229442, March.
    6. Guo, Xingchen & Jiang, Changmin & Jiang, Siming & Guo, Huanxiu, 2023. "Making airline coalition frequent-flyer programs profitable: An analytical investigation," Transport Policy, Elsevier, vol. 141(C), pages 245-262.
    7. de Oliveira, McWillian & Eufrásio, Ana Beatriz Rebouças & Guterres, Marcelo Xavier & Murça, Mayara Condé Rocha & Gomes, Rogéria de Arantes, 2021. "Analysis of airport weather impact on on-time performance of arrival flights for the Brazilian domestic air transportation system," Journal of Air Transport Management, Elsevier, vol. 91(C).
    8. Li, Max Z. & Ryerson, Megan S., 2019. "Reviewing the DATAS of aviation research data: Diversity, availability, tractability, applicability, and sources," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 111-130.
    9. Calzada, Joan & Fageda, Xavier, 2023. "Airport dominance, route network design and flight delays," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).

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    More about this item

    Keywords

    Airline alliance; Competition; Flight cancellation; Oneworld; Sky Team; Star Alliance; C25; D40; L93;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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