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Internalization of congestion at US hub airports

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  • Ater, Itai

Abstract

I study delays and congestion patterns in US hub airports during periods of high flight volume. I find that these periods are longer when the share of flights operated by the hub airline is greater, and these longer periods exhibit shorter delays. These results lend support to recent theoretical work on congestion, implying that hub-airlines take into account the impact of their scheduling decisions on the congestion that they bear. The results may suggest that congestion management solutions implemented at hub airports dominated by one airline could have only a limited impact on congestion in general.

Suggested Citation

  • Ater, Itai, 2012. "Internalization of congestion at US hub airports," Journal of Urban Economics, Elsevier, vol. 72(2), pages 196-209.
  • Handle: RePEc:eee:juecon:v:72:y:2012:i:2:p:196-209
    DOI: 10.1016/j.jue.2012.05.004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sheard, Nicholas, 2017. "Airport consolidation and the provision of air services," Journal of Air Transport Management, Elsevier, vol. 60(C), pages 31-44.
    2. Ivaldi, Marc & Quinet, Emile & Urdanoz, Miguel & de Villemeur, Étienne, 2014. "The Social Cost of Air Traffic Delays," TSE Working Papers 14-545, Toulouse School of Economics (TSE).
    3. Fageda, Xavier & Flores-Fillol, Ricardo, 2016. "How do airlines react to airport congestion? The role of networks," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 73-81.
    4. repec:eee:trapol:v:63:y:2018:i:c:p:165-175 is not listed on IDEAS
    5. Gillen, David & Jacquillat, Alexandre & Odoni, Amedeo R., 2016. "Airport demand management: The operations research and economics perspectives and potential synergies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 495-513.
    6. Bendinelli, William E. & Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Airline delays, congestion internalization and non-price spillover effects of low cost carrier entry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 39-52.
    7. Jiang, Changmin & Zhang, Anming, 2015. "Airport congestion pricing and terminal investment: Effects of terminal congestion, passenger types, and concessionsAuthor-Name: Wan, Yulai," Transportation Research Part B: Methodological, Elsevier, vol. 82(C), pages 91-113.
    8. Bubalo, Branko & Gaggero, Alberto A., 2015. "Low-cost carrier competition and airline service quality in Europe," Transport Policy, Elsevier, vol. 43(C), pages 23-31.
    9. Brueckner, Jan K. & Lin, Ming Hsin, 2016. "Convenient flight connections vs. airport congestion: Modeling the ‘rolling hub’," International Journal of Industrial Organization, Elsevier, vol. 48(C), pages 118-142.
    10. Ivaldi, Marc & Quinet, Emile & Urdanoz, Miguel & de Villemeur, Étienne, 2014. "Airlines, Delays, Social Optimum, Calibration," IDEI Working Papers 842, Institut d'Économie Industrielle (IDEI), Toulouse.
    11. Fageda, Xavier, 1975- & Flores-Fillol, Ricardo, 2012. "Airport Congestion and Airline Network Structure," Working Papers 2072/211753, Universitat Rovira i Virgili, Department of Economics.

    More about this item

    Keywords

    Congestion; Air transportation; Air delays; Market concentration;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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