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The Southwest effect: A time-series analysis on passengers carried by selected routes and a market share comparison

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  • Pitfield, D.E.

Abstract

The Southwest effect has been known for some time in terms of the US airline's impact on pricing, competition and traffic volumes. But recent estimates of the impact on traffic and market shares do not exist. This desideratum can be addressed by applying autoregressive integrated moving average (ARIMA) models with intervention analysis to key domestic air routes in the USA, where Southwest has started service. The paper first deals with the choice of routes to be examined and, after a preliminary statistical description of these, applies ARIMA models. These results are examined for both their statistical qualities and their reasonableness and the impacts are compared to those previously determined in the same way for Ryanair's routes from London.

Suggested Citation

  • Pitfield, D.E., 2008. "The Southwest effect: A time-series analysis on passengers carried by selected routes and a market share comparison," Journal of Air Transport Management, Elsevier, vol. 14(3), pages 113-122.
    • Handle: RePEc:eee:jaitra:v:14:y:2008:i:3:p:113-122
    DOI: 10.1016/j.jairtraman.2008.02.006
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    1. Charles Boguslaski & Harumi Ito & Darin Lee, 2004. "Entry Patterns in the Southwest Airlines Route System," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 25(3), pages 317-350, August.
    2. D. E. Pitfield, 2007. "Ryanair's Impact on Airline Market Share from the London Area Airports: A Time Series Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 41(1), pages 75-92, January.
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    4. Vowles, Timothy M., 2001. "The “Southwest Effect†in multi-airport regions," Journal of Air Transport Management, Elsevier, vol. 7(4), pages 251-258.
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    Cited by:

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    2. Hideki Murakami, 2010. "Time Effect of Low-Cost Carrier Entry and Social Welfare in US Large Air Markets," Discussion Papers 2010-31, Kobe University, Graduate School of Business Administration.
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    5. Murakami, Hideki & Amano, Yoshihisa & Asahi, Ryota, 2015. "Dynamic effect of inter-firm rivalry on airfares: Case of Japan's full-service and new air carriers," Journal of Air Transport Management, Elsevier, vol. 44, pages 25-33.
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    8. Hideki Murakami & Yoshihisa Amano, 2013. "Dynamic effect of inter-airline rivalry on airfares and consumers' welfare: Japan' s full-service vs. new air carriers," Discussion Papers 2013-31, Kobe University, Graduate School of Business Administration.
    9. Filipe Teixeira & Ben Derudder, 2019. "SKYNET: An R package for generating air passenger networks for urban studies," Urban Studies, Urban Studies Journal Limited, vol. 56(14), pages 3030-3044, November.
    10. Abdelghany, Ahmed & Guzhva, Vitaly S., 2022. "Exploratory analysis of air travel demand stimulation in first-time served markets," Journal of Air Transport Management, Elsevier, vol. 98(C).

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