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The Social Cost of Air Traffic Delays

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  • Ivaldi, Marc
  • Quinet, Emile
  • Urdanoz, Miguel
  • de Villemeur, Étienne

Abstract

The so-called buffer time or buffer delay allows airlines to control for excessive delays by introducing extra time in their schedule in addition to what is technically required. . We study the differences between unregulated markets - where airlines are free to fix their buffer times strategically - and a situation where a social planner would control for time schedules, and in particular the buffer time. To do so, we use a calibrated model of a network of three cities - one of them being a hub - served by a single airline. Welfare losses that follow from delays are relatively small as compared to the potential benefits that would follow from a decrease in ticket prices. The model thus advocates that, at least for the connections that are considered, fares rather than delays should be the focus of institutions aiming at enhancing passengers’ welfare.

Suggested Citation

  • Ivaldi, Marc & Quinet, Emile & Urdanoz, Miguel & de Villemeur, Étienne, 2014. "The Social Cost of Air Traffic Delays," TSE Working Papers 14-545, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:28859
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    Cited by:

    1. Adler, Nicole & Yazhemsky, Ekaterina, 2018. "The value of a marginal change in capacity at congested airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 154-167.
    2. Bendinelli, William E. & Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Airline delays, congestion internalization and non-price spillover effects of low cost carrier entry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 39-52.

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    More about this item

    Keywords

    Airlines; Delays; Social Optimum; Calibration;
    All these keywords.

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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