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On the Factors that Affect Airline Flight Frequency and Aircraft Size

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  • Vivek Pai

    ()
    (Department of Economics, University of California-Irvine)

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    Abstract

    This paper assesses the determinants of aircraft size and frequency of flights on airline routes by considering market demographics, airport characteristics, airline characteristics and route characteristics. The paper shows that frequency and aircraft size increase with population, income, and runway length. An increase in the proportion of managerial workers in the labor force or the proportion of population below the age of 25 results in greater frequency with the use of small planes. Slot constrained airports and an increase in the number of nearby airports lead to lower flight frequency with the use of smaller planes. Hubs and low cost carriers are associated with larger plane sizes and higher frequency, while regional airline ownership leads to higher frequency and the use of smaller planes. An increase in distance between the endpoints leads to lower frequency with the use of larger planes. As airport delay rises, airlines reduce frequency and use smaller planes, though when airport cancellations rise, flight frequency increases with the use of larger planes. This finding suggests airlines utilize frequency and aircraft size to hedge against flight cancellations.

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    File URL: http://www.economics.uci.edu/files/economics/docs/workingpapers/2007-08/pai-03.pdf
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    Bibliographic Info

    Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 070803.

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    Length: 36 pages
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:irv:wpaper:070803

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    Postal: Irvine, CA 92697-3125
    Phone: (949) 824-5788
    Web page: http://www.economics.uci.edu/
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    Related research

    Keywords: Airline; Frequency; Aircraft size; Markets;

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    1. Martin Dresner & Robert Windle & Yuliang Yao, 2002. "Airport Barriers to Entry in the US," Journal of Transport Economics and Policy, London School of Economics and University of Bath, London School of Economics and University of Bath, vol. 36(3), pages 389-405, September.
    2. Brueckner, Jan K. & Pai, Vivek, 2009. "Technological innovation in the airline industry: The impact of regional jets," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 27(1), pages 110-120, January.
    3. Brueckner, Jan K., 2002. "Network Structure and Airline Scheduling," Working Papers, University of Illinois at Urbana-Champaign, College of Business 02-0112, University of Illinois at Urbana-Champaign, College of Business.
    4. Dresner, Martin & Windle, Robert & Zhou, Ming, 2002. "Regional jet services: supply and demand," Journal of Air Transport Management, Elsevier, Elsevier, vol. 8(5), pages 267-273.
    5. Wenbin Wei & Mark Hansen, 2003. "Cost Economics of Aircraft Size," Journal of Transport Economics and Policy, London School of Economics and University of Bath, London School of Economics and University of Bath, vol. 37(2), pages 279-296, May.
    6. Nicholas G. Rupp & George M. Holmes, 2006. "An Investigation into the Determinants of Flight Cancellations," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 73(292), pages 749-783, November.
    7. Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer, Springer, vol. 30(3), pages 161-177, May.
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