Air services on thin routes: Regional versus low-cost airlines
AbstractAn examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes - regional jet technology and the low-cost business model - reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies).
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Bibliographic InfoPaper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201123.
Length: 45 pages
Date of creation: Oct 2011
Date of revision: Oct 2011
air transportation; regional jet technology; low-cost business model; thin markets JEL classification:L13; L2; L93;
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- JEL - Labor and Demographic Economics - - - - -
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- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-01 (All new papers)
- NEP-EUR-2011-11-01 (Microeconomic European Issues)
- NEP-URE-2011-11-01 (Urban & Real Estate Economics)
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