IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v145y2021ics1366554520308280.html
   My bibliography  Save this article

Are on-time performance statistics worthless? An empirical study of the flight scheduling strategies of Brazilian airlines

Author

Listed:
  • Eufrásio, Ana Beatriz R.
  • Eller, Rogéria A.G.
  • Oliveira, Alessandro V.M.

Abstract

Airlines may manage their on-time performance by lengthening schedules with engineered increases in planned flight times. We develop an econometric model of high dimensional sparse (HDS) regression to decompose the extra schedule block times into operational and strategic factors. We estimate the impact of extra times on flight delays, allowing for the moderation effects of runway congestion, slots, and propagated delay. We test the hypothesis of the existence and effectiveness of schedule padding practices. We find that a 2012 on-time disclosure rule may have induced carriers’ padding behavior. In contrast, slot regulation may prevent the formation of extra block times.

Suggested Citation

  • Eufrásio, Ana Beatriz R. & Eller, Rogéria A.G. & Oliveira, Alessandro V.M., 2021. "Are on-time performance statistics worthless? An empirical study of the flight scheduling strategies of Brazilian airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
  • Handle: RePEc:eee:transe:v:145:y:2021:i:c:s1366554520308280
    DOI: 10.1016/j.tre.2020.102186
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554520308280
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tre.2020.102186?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Miranda, Victor A.P. & Oliveira, Alessandro V.M., 2018. "Airport slots and the internalization of congestion by airlines: An empirical model of integrated flight disruption management in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 201-219.
    2. Victor Chernozhukov & Christian Hansen & Martin Spindler, 2015. "Post-Selection and Post-Regularization Inference in Linear Models with Many Controls and Instruments," American Economic Review, American Economic Association, vol. 105(5), pages 486-490, May.
    3. Alexandre Belloni & Victor Chernozhukov & Christian Hansen, 2014. "High-Dimensional Methods and Inference on Structural and Treatment Effects," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 29-50, Spring.
    4. Brueckner, Jan K. & Czerny, Achim I. & Gaggero, Alberto A., 2021. "Airline mitigation of propagated delays via schedule buffers: Theory and empirics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    5. Forbes, Silke J. & Lederman, Mara & Wither, Michael J., 2019. "Quality disclosure when firms set their own quality targets," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 228-250.
    6. A. Belloni & D. Chen & V. Chernozhukov & C. Hansen, 2012. "Sparse Models and Methods for Optimal Instruments With an Application to Eminent Domain," Econometrica, Econometric Society, vol. 80(6), pages 2369-2429, November.
    7. Edwards, Holly A. & Dixon-Hardy, Darron & Wadud, Zia, 2016. "Aircraft cost index and the future of carbon emissions from air travel," Applied Energy, Elsevier, vol. 164(C), pages 553-562.
    8. Deo, Vinicius Ayello & Silvestre, Flavio J. & Morales, Mauricio, 2020. "The benefits of tankering considering cost index flying and optional refuelling stops," Journal of Air Transport Management, Elsevier, vol. 82(C).
    9. Alexandre Belloni & Victor Chernozhukov & Christian Hansen, 2014. "Inference on Treatment Effects after Selection among High-Dimensional Controlsâ€," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 608-650.
    10. Jeffrey T. Prince & Daniel H. Simon, 2015. "Do Incumbents Improve Service Quality in Response to Entry? Evidence from Airlines' On-Time Performance," Management Science, INFORMS, vol. 61(2), pages 372-390, February.
    11. Jan Brueckner & Darin Lee & Ethan Singer, 2014. "City-Pairs Versus Airport-Pairs: A Market-Definition Methodology for the Airline Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(1), pages 1-25, February.
    12. Hao, Lu & Hansen, Mark, 2014. "Block time reliability and scheduled block time setting," Transportation Research Part B: Methodological, Elsevier, vol. 69(C), pages 98-111.
    13. Santos, Georgina & Robin, Maël, 2010. "Determinants of delays at European airports," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 392-403, March.
    14. Kafle, Nabin & Zou, Bo, 2016. "Modeling flight delay propagation: A new analytical-econometric approach," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 520-542.
    15. Bendinelli, William E. & Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Airline delays, congestion internalization and non-price spillover effects of low cost carrier entry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 39-52.
    16. Diana, Tony, 2017. "Has market concentration fostered on-time performance? A case study of seventy-two U.S. airports," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 1-8.
    17. Wang, Yanjun & Zhou, Ying & Hansen, Mark & Chin, Christopher, 2019. "Scheduled block time setting and on-time performance of U.S. and Chinese airlines—A comparative analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 825-843.
    18. Zou, Bo & Elke, Matthew & Hansen, Mark & Kafle, Nabin, 2014. "Evaluating air carrier fuel efficiency in the US airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 306-330.
    19. Kang, Lei & Hansen, Mark, 2017. "Behavioral analysis of airline scheduled block time adjustment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 56-68.
    20. Yimga, Jules & Gorjidooz, Javad, 2019. "Airline schedule padding and consumer choice behavior," Journal of Air Transport Management, Elsevier, vol. 78(C), pages 71-79.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brueckner, Jan K. & Czerny, Achim I. & Gaggero, Alberto A., 2022. "Airline delay propagation: A simple method for measuring its extent and determinants," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 55-71.
    2. Brueckner, Jan K. & Czerny, Achim I. & Gaggero, Alberto A., 2021. "Airline schedule buffers and flight delays: A discrete model," Economics of Transportation, Elsevier, vol. 26.
    3. Oliveira, Bruno F. & Oliveira, Alessandro V.M., 2022. "An empirical analysis of the determinants of network construction for Azul Airlines," Journal of Air Transport Management, Elsevier, vol. 101(C).
    4. Bolić, Tatjana & Castelli, Lorenzo & Corolli, Luca & Scaini, Giovanni, 2021. "Flexibility in strategic flight planning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    5. Ma, Hoi-Lam & Sun, Yige & Chung, Sai-Ho & Chan, Hing Kai, 2022. "Tackling uncertainties in aircraft maintenance routing: A review of emerging technologies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brito, Igor R.S. & Oliveira, Alessandro V.M. & Dresner, Martin E., 2021. "An econometric study of the effects of airport privatization on airfares in Brazil," Transport Policy, Elsevier, vol. 114(C), pages 338-349.
    2. Brueckner, Jan K. & Czerny, Achim I. & Gaggero, Alberto A., 2022. "Airline delay propagation: A simple method for measuring its extent and determinants," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 55-71.
    3. Brueckner, Jan K. & Czerny, Achim I. & Gaggero, Alberto A., 2021. "Airline mitigation of propagated delays via schedule buffers: Theory and empirics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    4. Alessandro V. M. Oliveira & Bruno F. Oliveira & Moises D. Vassallo, 2024. "Airport service quality perception and flight delays: examining the influence of psychosituational latent traits of respondents in passenger satisfaction surveys," Papers 2401.02139, arXiv.org.
    5. Brueckner, Jan K. & Czerny, Achim I. & Gaggero, Alberto A., 2021. "Airline schedule buffers and flight delays: A discrete model," Economics of Transportation, Elsevier, vol. 26.
    6. Abdelghany, Ahmed & Guzhva, Vitaly S. & Abdelghany, Khaled, 2023. "The limitation of machine-learning based models in predicting airline flight block time," Journal of Air Transport Management, Elsevier, vol. 107(C).
    7. Santos, Luca J. & Oliveira, Alessandro V.M. & Aldrighi, Dante Mendes, 2021. "Testing the differentiated impact of the COVID-19 pandemic on air travel demand considering social inclusion," Journal of Air Transport Management, Elsevier, vol. 94(C).
    8. Sismanidou, Athina & Tarradellas, Joan & Suau-Sanchez, Pere, 2022. "The uneven geography of US air traffic delays: Quantifying the impact of connecting passengers on delay propagation," Journal of Transport Geography, Elsevier, vol. 98(C).
    9. Wang, Chunzheng & Hu, Minghua & Yang, Lei & Zhao, Zheng, 2022. "Improving the spatial-temporal generalization of flight block time prediction: A development of stacking models," Journal of Air Transport Management, Elsevier, vol. 103(C).
    10. Su, Liangjun & Ura, Takuya & Zhang, Yichong, 2019. "Non-separable models with high-dimensional data," Journal of Econometrics, Elsevier, vol. 212(2), pages 646-677.
    11. Pushan Dutt & Ilia Tsetlin, 2021. "Income distribution and economic development: Insights from machine learning," Economics and Politics, Wiley Blackwell, vol. 33(1), pages 1-36, March.
    12. Alessandro V. M. Oliveira & Thiago Caliari & Rodolfo R. Narcizo, 2024. "An empirical model of fleet modernization: on the relationship between market concentration and innovation adoption in the Brazilian airline industry," Papers 2401.06876, arXiv.org.
    13. 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).
    14. Everding, Jakob & Marcus, Jan, 2020. "The effect of unemployment on the smoking behavior of couples," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(2), pages 154-170.
    15. Sander Gerritsen & Mark Kattenberg & Sonny Kuijpers, 2019. "The impact of age at arrival on education and mental health," CPB Discussion Paper 389.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    16. Frank Windmeijer & Helmut Farbmacher & Neil Davies & George Davey Smith, 2019. "On the Use of the Lasso for Instrumental Variables Estimation with Some Invalid Instruments," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 114(527), pages 1339-1350, July.
    17. Sander Gerritsen & Mark Kattenberg & Sonny Kuijpers, 2019. "The impact of age at arrival on education and mental health," CPB Discussion Paper 389, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Philipp Bach & Victor Chernozhukov & Malte S. Kurz & Martin Spindler & Sven Klaassen, 2021. "DoubleML -- An Object-Oriented Implementation of Double Machine Learning in R," Papers 2103.09603, arXiv.org, revised Feb 2024.
    19. Kim, Myeonghyeon & Bae, Jiheon, 2021. "Modeling the flight departure delay using survival analysis in South Korea," Journal of Air Transport Management, Elsevier, vol. 91(C).
    20. Roucolle, Chantal & Seregina, Tatiana & Urdanoz, Miguel, 2020. "Network development and excess travel time," Transport Policy, Elsevier, vol. 94(C), pages 139-152.

    More about this item

    Keywords

    Airlines; Schedule padding; On-time performance; Econometrics; LASSO regression;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:145:y:2021:i:c:s1366554520308280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.