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Airline Schedule Recovery after Airport Closures: Empirical Evidence since September 11

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  • Nicholas G. Rupp

    ()
    (Department of Economics, East Carolina University)

  • George M. Holmes

    (University of North Carolina)

  • Jeff DeSimone

    (Department of Economics, University of South Florida)

Abstract

Since the September 11, 2001, terrorist attacks, repeated airport closures due to security breaches have imposed substantial costs on travelers, airlines, and government agencies in terms of flight delays and cancellations. Using data from the year following September 11, this study examines how airlines recover flight schedules upon reopening of airports that have been closed for security reasons. As such, this is the first study to empirically examine service quality during irregular airport operations. Our results indicate that economic considerations, particularly the potential revenue per flight, have predictable effects on service quality following airport closures. Airport concentration, hub destination, and various logistical factors also significantly influence flight outcomes.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 71 (2005)
Issue (Month): 4 (April)
Pages: 800-820

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Handle: RePEc:sej:ancoec:v:71:4:y:2005:p:800-820

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  1. Borenstein, Severin & Netz, Janet, 1999. "Why do all the flights leave at 8 am?: Competition and departure-time differentiation in airline markets," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 17(5), pages 611-640, July.
  2. Nicholas G. Rupp & Douglas H. Owens & L. Wayne Plumly, . "Does Competition Influence Airline On-Time Performance?," Working Papers, East Carolina University, Department of Economics 0301, East Carolina University, Department of Economics.
  3. Thengvall, Benjamin G. & Yu, Gang & Bard, Jonathan F., 2001. "Multiple fleet aircraft schedule recovery following hub closures," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 35(4), pages 289-308, May.
  4. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, American Economic Association, vol. 92(5), pages 1357-1375, December.
  5. Christopher Mayer & Todd Sinai, . "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why All Delays Are Not Evil," Zell/Lurie Center Working Papers, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania 393, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
  6. Stephen Foreman, 1999. "Publication of Information and Market Response: The Case of Airline on Time Performance Reports," Review of Industrial Organization, Springer, Springer, vol. 14(2), pages 147-162, March.
  7. Kim, E Han & Singal, Vijay, 1993. "Mergers and Market Power: Evidence from the Airline Industry," American Economic Review, American Economic Association, American Economic Association, vol. 83(3), pages 549-69, June.
  8. Nick Rupp & Mark Holmes, . "Why Are So Many Flights Canceled?," Working Papers, East Carolina University, Department of Economics 0204, East Carolina University, Department of Economics.
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Cited by:
  1. Carl Bonham & Christopher Edmonds & James Mak, 2006. "The Impact of 9/11 and Other Terrible Global Events on Tourism in the U.S. and Hawaii," Economics Study Area Working Papers, East-West Center, Economics Study Area 87, East-West Center, Economics Study Area.
  2. Harumi Ito & Darin Lee, 2003. "Assessing the Impact of the September 11 Terrorist Attacks on U.S. Airline Demand," Working Papers 2003-16, Brown University, Department of Economics.
  3. Claudio Agostini, 2005. "El Mercado de Transporte Aéreo: Lecciones para Chile de una Revisión de la Literatura," ILADES-Georgetown University Working Papers, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines inv163, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.

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