Analysis of demand structures on intercontinental routes to and from Europe with a view to identifying potential for new low-cost services
In contrast to short- and medium-distance flights, intercontinental flights by legacy carriers need feeder demand from both passengers and freight, in order to be commercially viable. The origin to destination (OD) demand on intercontinental routes is often only a small fraction of the total passenger volume on that route. Low-cost carriers like Norwegian Air (DY) are more and more interested in serving intercontinental routes, although their business model relies primarily on point-to-point traffic. It is the objective of this paper to describe the demand structure on intercontinental routes â€“ that is, the direct OD demand, the OD demand using transfer services, and the feeder demand at both trip origin and destination â€“ by route type, and to draw conclusions regarding the potential for new services (i.e. in the low-cost segment and on hub-bypassing routes, where a lack of OD and/or feeder demand may form obstacles for carriers attempting to enter the market). The analysis concentrates therefore on routes with relatively small passenger volumes and on a demand model which estimates the passenger volumes in relation to the OD demand and supply factors.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 56 (2016)
Issue (Month): PB ()
|Contact details of provider:|| Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de Wit, Jaap G. & Zuidberg, Joost, 2012. "The growth limits of the low cost carrier model," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 17-23.
- Givoni, Moshe & Rietveld, Piet, 2009. "Airline's choice of aircraft size - Explanations and implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 500-510, June.
- Daft, Jost & Albers, Sascha, 2012. "A profitability analysis of low-cost long-haul flight operations," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 49-54.
- Berster, Peter & Gelhausen, Marc C. & Wilken, Dieter, 2015. "Is increasing aircraft size common practice of airlines at congested airports?," Journal of Air Transport Management, Elsevier, vol. 46(C), pages 40-48.
- Endo, Nobuaki, 2007. "International trade in air transport services: Penetration of foreign airlines into Japan under the bilateral aviation policies of the US and Japan," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 285-292.
- Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
- Hazledine, Tim, 2009. "Border effects for domestic and international Canadian passenger air travel," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 7-13.
- Frédéric Dobruszkes, 2006. "An analysis of European low-cost airlines and their networks," ULB Institutional Repository 2013/95835, ULB -- Universite Libre de Bruxelles.
- Matsumoto, Hidenobu, 2004. "International urban systems and air passenger and cargo flows: some calculations," Journal of Air Transport Management, Elsevier, vol. 10(4), pages 239-247.
- Malighetti, Paolo & Paleari, Stefano & Redondi, Renato, 2008. "Connectivity of the European airport network: â€œSelf-help hubbingâ€ and business implications," Journal of Air Transport Management, Elsevier, vol. 14(2), pages 53-65.
- Dennis, Nigel, 2007. "End of the free lunch? The responses of traditional European airlines to the low-cost carrier threat," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 311-321.
- Windle, Robert & Dresner, Martin, 1999. "Competitive responses to low cost carrier entry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 35(1), pages 59-75, March.
- Grosche, Tobias & Rothlauf, Franz & Heinzl, Armin, 2007. "Gravity models for airline passenger volume estimation," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 175-183.
- Fageda, Xavier & Suau-Sanchez, Pere & Mason, Keith J., 2015. "The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 289-296.
- Barrett, Sean D., 2004. "How do the demands for airport services differ between full-service carriers and low-cost carriers?," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 33-39.
- Morrell, Peter, 2008. "Can long-haul low-cost airlines be successful?," Research in Transportation Economics, Elsevier, vol. 24(1), pages 61-67.
- Wensveen, John G. & Leick, Ryan, 2009. "The long-haul low-cost carrier: A unique business model," Journal of Air Transport Management, Elsevier, vol. 15(3), pages 127-133.
- Hooper, Paul, 2005. "The environment for Southeast Asia's new and evolving airlines," Journal of Air Transport Management, Elsevier, vol. 11(5), pages 335-347.
- Pels, Eric, 2008. "Airline network competition: Full-service airlines, low-cost airlines and long-haul markets," Research in Transportation Economics, Elsevier, vol. 24(1), pages 68-74.
- Oâ€™Connell, John F. & Williams, George, 2005. "Passengersâ€™ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 259-272.
- Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2005. "Network competitionâ€”the coexistence of hub-and-spoke and point-to-point systems," Journal of Air Transport Management, Elsevier, vol. 11(5), pages 328-334.
- Bhadra, Dipasis & Kee, Jacqueline, 2008. "Structure and dynamics of the core US air travel markets: A basic empirical analysis of domestic passenger demand," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 27-39.
- Zuidberg, Joost, 2014. "Identifying airline cost economies: An econometric analysis of the factors affecting aircraft operating costs," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 86-95.
When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:56:y:2016:i:pb:p:79-90. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.