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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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    Cited by:

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