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Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market

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  • Bernardo, Valeria
  • Fageda, Xavier

Abstract

This paper examines the effects of competition driven by low-cost airlines and high-speed trains on long-haul connecting routings. We use passenger and fare data for 2010–2017 on transatlantic routings with a stopover in large European hub airports. Competition from low-cost airlines on the short segments of transatlantic routings reduces the number of connecting passengers channeled by hubbing airlines, who have to pay higher fares. In contrast, high-speed rail services are not found to lead to a reduction in the number of connecting passengers or to an increase in the price they have to pay.

Suggested Citation

  • Bernardo, Valeria & Fageda, Xavier, 2020. "Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market," Transport Policy, Elsevier, vol. 96(C), pages 141-151.
    • Handle: RePEc:eee:trapol:v:96:y:2020:i:c:p:141-151
    DOI: 10.1016/j.tranpol.2020.06.005
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