IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v124y2022icp203-211.html
   My bibliography  Save this article

Analysis of the effect of bundled airport privatization on an airline network

Author

Listed:
  • Tani, Ryuichi
  • Takashima, Ibuki
  • Kato, Teppei
  • Tamura, Toru
  • Uchida, Kenetsu

Abstract

Depopulated regions face declines in traffic demand for airline service. The airline network in Hokkaido, Japan, plays an important role in the regional economy, healthcare, and sightseeing. Toward maintaining this airline network, the “bundled privatization” of airports has been discussed. Under such a system, several airports are privatized as a package for management by a single company. This study proposes a model for analyzing the behaviors of airport operators, airline companies, and passengers when bundled privatization is introduced to an airline network. Under bundled privatization, an airport management company can determine the landing fees of all airports such as to maximize the profits of all its airports, while an airline company can determine its service frequencies and aircraft sizes such as to maximize its profit. As a result of these two profit-maximization behaviors, an equilibrium state is obtained. The proposed model is applied to the airline network in Hokkaido, and the results of numerical calculations are discussed.

Suggested Citation

  • Tani, Ryuichi & Takashima, Ibuki & Kato, Teppei & Tamura, Toru & Uchida, Kenetsu, 2022. "Analysis of the effect of bundled airport privatization on an airline network," Transport Policy, Elsevier, vol. 124(C), pages 203-211.
    • Handle: RePEc:eee:trapol:v:124:y:2022:i:c:p:203-211
    DOI: 10.1016/j.tranpol.2021.04.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X21001165
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2021.04.021?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. Takebayashi, Mikio, 2011. "The runway capacity constraint and airlines' behavior: Choice of aircraft size and network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(3), pages 390-400, May.
    2. Adler, Nicole & Pels, Eric & Nash, Chris, 2010. "High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 812-833, August.
    3. Adler, Nicole, 2001. "Competition in a deregulated air transportation market," European Journal of Operational Research, Elsevier, vol. 129(2), pages 337-345, March.
    4. Takebayashi, Mikio, 2018. "Managing airport charges under the multiple hub network with high speed rail: Considering capacity and gateway function," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 108-123.
    Full references (including those not matched with items on IDEAS)

    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. Jingni Song & Feng Chen & Qunqi Wu & Weiyu Liu & Feiyang Xue & Kai Du, 2019. "Optimization of Passenger Transportation Corridor Mode Supply Structure in Regional Comprehensive Transport Considering Economic Equilibrium," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    2. Takebayashi, Mikio, 2015. "Multiple hub network and high-speed railway: Connectivity, gateway, and airport leakage," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 55-64.
    3. Jiang, Changmin, 2021. "Aviation tax and railway subsidy: An integrated policy," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 1-13.
    4. Wang, Kun & Fu, Xiaowen & Czerny, Achim I. & Hua, Guowei & Lei, Zheng, 2020. "Modeling the potential for aviation liberalization in Central Asia – Market analysis and implications for the Belt and Road Initiative," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 184-210.
    5. Takebayashi, Mikio, 2021. "Workability of a multiple-gateway airport system with a high-speed rail network," Transport Policy, Elsevier, vol. 107(C), pages 61-71.
    6. Takebayashi, Mikio & Yamaguchi, Hiromichi, 2022. "Managing a multiple-gateway airport system with super high-speed rail," Journal of Air Transport Management, Elsevier, vol. 99(C).
    7. Takebayashi, Mikio, 2013. "Network competition and the difference in operating cost: Model analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 85-94.
    8. Takebayashi, Mikio, 2016. "How could the collaboration between airport and high speed rail affect the market?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 277-286.
    9. Lay Eng Teoh & Hooi Ling Khoo, 2016. "Fleet Planning Decision-Making: Two-Stage Optimization with Slot Purchase," Journal of Optimization, Hindawi, vol. 2016, pages 1-12, June.
    10. Wang, Yixiao & Pels, Eric & Teunter, Ruud H. & Sun, Luoyi & Wu, Jianhong, 2023. "Railway liberalization, airport congestion toll, and infrastructure pricing: Modelling and numerical analysis for European and Chinese markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    11. Cruijssen, F. & Borm, P.E.M. & Fleuren, H.A. & Hamers, H.J.M., 2005. "Insinking : A Methodology to Exploit Synergy in Transportation," Other publications TiSEM 958be918-e7b4-4e46-9cbe-d, Tilburg University, School of Economics and Management.
    12. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    13. Wang, Kun & Xia, Wenyi & Zhang, Anming & Zhang, Qiong, 2018. "Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 99-130.
    14. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.
    15. Bugarinovic, Mirjana & Boskovic, Branislav, 2015. "A systems approach to access charges in unbundling railways," European Journal of Operational Research, Elsevier, vol. 240(3), pages 848-860.
    16. Tsunoda, Yushi, 2018. "Transportation policy for high-speed rail competing with airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 350-360.
    17. Jiang, Changmin & D'Alfonso, Tiziana & Wan, Yulai, 2017. "Air-rail cooperation: Partnership level, market structure and welfare implications," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 461-482.
    18. Papakonstantinou, Ilia & Lee, Jinwoo & Madanat, Samer Michel, 2019. "Game theoretic approaches for highway infrastructure protection against sea level rise: Co-opetition among multiple players," Transportation Research Part B: Methodological, Elsevier, vol. 123(C), pages 21-37.
    19. Thisse, Jacques-François & Proost, Stef, 2015. "Skilled Cities, Regional Disparities, and Efficient Transport: The state of the art and a research agenda," CEPR Discussion Papers 10790, C.E.P.R. Discussion Papers.
    20. Xia, Wenyi & Zhang, Anming, 2016. "High-speed rail and air transport competition and cooperation: A vertical differentiation approach," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 456-481.

    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:trapol:v:124:y:2022:i:c:p:203-211. 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/30473/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.