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).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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;
Find related papers by JEL classification:
- thi - - - - - -
- mar - - - - - -
- JEL - Labor and Demographic Economics - - - - -
- cla - - - - - -
- 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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Youdi Schipper & Piet Rietveld & Peter Nijkamp, 2002. "European Airline Reform: An Empirical Welfare Analysis," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(2), pages 189-209, May.
- Alberto Gaggero & Claudio A. Piga, 2008.
"Airline Competition in the British Isles,"
Discussion Paper Series
2008_12, Department of Economics, Loughborough University, revised Oct 2008.
- Gaggero, Alberto A. & Piga, Claudio A., 2010. "Airline competition in the British Isles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(2), pages 270-279, March.
- Fageda, Xavier & Flores-Fillol, Ricardo, 2012. "On the optimal distribution of traffic of network airlines," European Economic Review, Elsevier, vol. 56(6), pages 1164-1179.
- Volodymir BilotKach & Xavier Fageda & Ricardo Flores-Fillol, 2009.
"Scheduled service versus personal transportation: the role of distance,"
- Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2010. "Scheduled service versus personal transportation: The role of distance," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 60-72, January.
- Volodymyr Bilotkach & Xavier Fageda & Ricardo Flores-Fillol, 2008. "Scheduled service versus personal transportation: the role of distance," Working Papers XREAP2008-13, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2008.
- Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2009. "Scheduled Service Versus Personal Transportation: The Role of Distance," Working Papers 2072/15846, Universitat Rovira i Virgili, Department of Economics.
- Dresner, Martin & Windle, Robert & Zhou, Ming, 2002. "Regional jet services: supply and demand," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 267-273.
- Oliveira, Alessandro V.M., 2008. "An empirical model of low-cost carrier entry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 673-695, May.
- Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer, vol. 30(3), pages 161-177, May.
- Flores-Fillol, Ricardo, 2010. "Congested hubs," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 358-370, March.
- Starkie, David & Starrs, Margaret, 1984. "Contestability and Sustainability in Regional Airline Markets," The Economic Record, The Economic Society of Australia, vol. 60(170), pages 274-83, September.
- Button, Kenneth & Lall, Somik & Stough, Roger & Trice, Mark, 1999. "High-technology employment and hub airports," Journal of Air Transport Management, Elsevier, vol. 5(1), pages 53-59.
- Flores-Fillol, Ricardo, 2009. "Airline competition and network structure," Transportation Research Part B: Methodological, Elsevier, vol. 43(10), pages 966-983, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alicia García).
If references are entirely missing, you can add them using this form.