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The impact of high speed rail on airport competition

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  • Ilse Terpstra
  • Mark G. Lijesen

Abstract

We study the effects of introducing a high speed train connection on competition between airports, focusing on the new HST-link between Amsterdam and Brussels. We conduct a detailed analysis regarding the airport choice of passengers living in the Netherlands, Belgium, Luxembourg, Northern France and Western Germany. We compare the results with Spain, where a high speed train between Madrid and Barcelona has recently been inaugurated. We estimate a multinomial logit model of airport choice and predict future market shares, based on access time, frequency, average fare and airport specific constants. Direct and cross-elasticities are calculated and finally future market shares are predicted, incorporating changes in access time due to the introduction of the high speed train. We find that the introduction of a high speed train connection benefits the airport with the higher level of service most. This is in line with general economic reasoning that stronger suppliers benefit more from increased competition.

Suggested Citation

  • Ilse Terpstra & Mark G. Lijesen, 2015. "The impact of high speed rail on airport competition," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(3), pages 263-275, July.
  • Handle: RePEc:bla:tvecsg:v:106:y:2015:i:3:p:263-275
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    File URL: http://hdl.handle.net/10.1111/tesg.12103
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    References listed on IDEAS

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    1. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Access to and competition between airports: a case study for the San Francisco Bay area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(1), pages 71-83, January.
    2. Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
    3. Ishii, Jun & Jun, Sunyoung & Van Dender, Kurt, 2009. "Air travel choices in multi-airport markets," Journal of Urban Economics, Elsevier, vol. 65(2), pages 216-227, March.
    4. Givoni, Moshe & Banister, David, 2006. "Airline and railway integration," Transport Policy, Elsevier, vol. 13(5), pages 386-397, September.
    5. Mar González-Savignat, 2004. "Competition in Air Transport," Journal of Transport Economics and Policy, University of Bath, vol. 38(1), pages 77-107, January.
    6. Furuichi, Masahiko & Koppelman, Frank S., 1994. "An analysis of air travelers' departure airport and destination choice behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(3), pages 187-195, May.
    7. Hess, Stephane & Polak, John W., 2006. "Exploring the potential for cross-nesting structures in airport-choice analysis: A case-study of the Greater London area," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(2), pages 63-81, March.
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    Cited by:

    1. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.

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