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Airport consolidation and the provision of air services

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  • Sheard, Nicholas

Abstract

Airport policy involves decisions about not only the sizes of airports but how many airports should serve a given area. I test the arguments for airport consolidation by estimating the effect of the number of airports on total local traffic using US data and a historical instrument for the number of airports. Cities that are randomly allocated a larger number of airports are found to host more air traffic and flights to more destinations. Furthermore, the effect is largely due to a greater number of transit passengers, so cities with multiple airports are more likely to be chosen as airline hubs.

Suggested Citation

  • Sheard, Nicholas, 2017. "Airport consolidation and the provision of air services," Journal of Air Transport Management, Elsevier, vol. 60(C), pages 31-44.
    • Handle: RePEc:eee:jaitra:v:60:y:2017:i:c:p:31-44
    DOI: 10.1016/j.jairtraman.2016.12.010
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    Cited by:

    1. Nicholas Sheard, 2019. "Airport Size and Urban Growth," Economica, London School of Economics and Political Science, vol. 86(342), pages 300-335, April.

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    More about this item

    Keywords

    Airport infrastructure; Air travel; Transportation policy;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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