IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v60y2017icp31-44.html
   My bibliography  Save this article

Airport consolidation and the provision of air services

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969971630093X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sheard, Nicholas, 2014. "Airports and urban sectoral employment," Journal of Urban Economics, Elsevier, vol. 80(C), pages 133-152.
    2. Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2011. "History and Industry Location: Evidence from German Airports," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 814-831, August.
    3. Nicholas Sheard, 2015. "Airport Improvements and Urban Growth," ERSA conference papers ersa15p28, European Regional Science Association.
    4. Andrew Goetz, 2013. "Suburban Sprawl or Urban Centres: Tensions and Contradictions of Smart Growth Approaches in Denver, Colorado," Urban Studies, Urban Studies Journal Limited, vol. 50(11), pages 2178-2195, August.
    5. Bazargan, Massoud & Vasigh, Bijan, 2003. "Size versus efficiency: a case study of US commercial airports," Journal of Air Transport Management, Elsevier, vol. 9(3), pages 187-193.
    6. Richard K. Green, 2007. "Airports and Economic Development," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(1), pages 91-112, March.
    7. Wolfram Schlenker & W. Reed Walker, 2016. "Airports, Air Pollution, and Contemporaneous Health," Review of Economic Studies, Oxford University Press, vol. 83(2), pages 768-809.
    8. Forbes, Silke J., 2008. "The effect of air traffic delays on airline prices," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1218-1232, September.
    9. Volodymyr Bilotkach, 2015. "Are airports engines of economic development? A dynamic panel data approach," Urban Studies, Urban Studies Journal Limited, vol. 52(9), pages 1577-1593, July.
    10. Jan K. Brueckner, 2003. "Airline Traffic and Urban Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 40(8), pages 1455-1469, July.
    11. Blonigen, Bruce A. & Cristea, Anca D., 2015. "Air service and urban growth: Evidence from a quasi-natural policy experiment," Journal of Urban Economics, Elsevier, vol. 86(C), pages 128-146.
    12. Severin Borenstein, 1989. "Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 344-365, Autumn.
    13. Martín, Juan Carlos & Voltes-Dorta, Augusto, 2011. "The dilemma between capacity expansions and multi-airport systems: Empirical evidence from the industry's cost function," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(3), pages 382-389, May.
    14. Gilles Duranton & Matthew A. Turner, 2012. "Urban Growth and Transportation," Review of Economic Studies, Oxford University Press, vol. 79(4), pages 1407-1440.
    15. Greenfield, Daniel, 2014. "Competition and service quality: New evidence from the airline industry," Economics of Transportation, Elsevier, vol. 3(1), pages 80-89.
    16. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Inefficiencies and scale economies of European airport operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(5), pages 341-361, September.
    17. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
    18. Borenstein, Severin & Rose, Nancy L, 1994. "Competition and Price Dispersion in the U.S. Airline Industry," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 653-683, August.
    19. Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2008. "Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports," Journal of Urban Economics, Elsevier, vol. 64(2), pages 422-435, September.
    20. Nicholas Sheard, 2015. "Airport Improvements and Urban Growth," AMSE Working Papers 1509, Aix-Marseille School of Economics, Marseille, France.
    21. Martín, Juan Carlos & Voltes-Dorta, Augusto, 2008. "International Airports: Economies of Scale and Marginal Costs," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(1).
    22. Ater, Itai, 2012. "Internalization of congestion at US hub airports," Journal of Urban Economics, Elsevier, vol. 72(2), pages 196-209.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Airport infrastructure; Air travel; Transportation policy;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:60:y:2017:i:c:p:31-44. 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). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.