IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v195y2025ics019126152500044x.html
   My bibliography  Save this article

Modeling the effects of new airport on a multi-airport system with air-rail integration service and heterogeneous passengers

Author

Listed:
  • Liu, Wen-Jing
  • Li, Zhi-Chun
  • Fu, Xiaowen

Abstract

This paper investigates the effects of new airport on a multi-airport system (MAS) with air-rail integration service and heterogeneous passengers. Vertical structure models are proposed to capture the interactions among the stakeholders: passengers, airlines, and rail operator. In the proposed models, passenger heterogeneity is reflected by a continuous value-of-time (VOT) distribution, and the total passenger demand is given. The critical VOTs dividing the passengers into different groups by travel mode are identified, and the distributional effects of new airport and air-rail cooperation on the heterogeneous passengers are examined. The findings show that the new airport and air-rail cooperation can benefit all passengers, and these benefits vary significantly across passengers. The poorest passengers gain the most from the air-rail cooperation. However, who gains the most from the new airport depends on the transfer time and cost for the new airport service. For a relatively low transfer time and cost, the mid-income passengers gain the most. Otherwise, the low-income passengers gain the most. At a high congestion level of the hub airport, introducing a new airport is more efficient in decreasing the social cost of the system than introducing the air-rail cooperation. Conversely, at a low congestion level of the hub airport, introducing a new airport may cause an increase in the social cost of the system instead. Consequently, the decision of investing in a new airport in an MAS should be carefully made.

Suggested Citation

  • Liu, Wen-Jing & Li, Zhi-Chun & Fu, Xiaowen, 2025. "Modeling the effects of new airport on a multi-airport system with air-rail integration service and heterogeneous passengers," Transportation Research Part B: Methodological, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:transb:v:195:y:2025:i:c:s019126152500044x
    DOI: 10.1016/j.trb.2025.103195
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S019126152500044X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.trb.2025.103195?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Takebayashi, Mikio, 2015. "Multiple hub network and high-speed railway: Connectivity, gateway, and airport leakage," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 55-64.
    2. de Bartolome, Charles A.M. & Ross, Stephen L., 2007. "Community income distributions in a metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(3), pages 496-518, May.
    3. Jiang, Changmin & Zhang, Anming, 2014. "Effects of high-speed rail and airline cooperation under hub airport capacity constraint," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 33-49.
    4. Eric Pels & Peter Nijkamp & Piet Rietveld, 2001. "Airport and Airline Choice in a Multiple Airport Region: An Empirical Analysis for the San Francisco Bay Area," Regional Studies, Taylor & Francis Journals, vol. 35(1), pages 1-9.
    5. Volodymyr Bilotkach, 2005. "Price Competition between International Airline Alliances," Journal of Transport Economics and Policy, University of Bath, vol. 39(2), pages 167-190, May.
    6. Hangjun Yang & Anming Zhang, 2011. "Price-cap regulation of congested airports," Journal of Regulatory Economics, Springer, vol. 39(3), pages 293-312, June.
    7. Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
    8. Yang, Hangjun & Zhang, Anming, 2012. "Effects of high-speed rail and air transport competition on prices, profits and welfare," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1322-1333.
    9. Takebayashi, Mikio, 2016. "How could the collaboration between airport and high speed rail affect the market?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 277-286.
    10. Xiaowen Fu & Hangjun Yang, 2017. "Airport–Airline Arrangements: An Interpretive Review of Industry Practices and Recent Studies," Advances in Airline Economics, in: The Economics of Airport Operations, volume 6, pages 97-122, Emerald Group Publishing Limited.
    11. Liu, Wen-Jing & Li, Zhi-Chun & Yang, Hai, 2024. "Gasoline and electric vehicle ownership rationing over time: Lottery vs. First-come-first-served schemes," Transportation Research Part B: Methodological, Elsevier, vol. 186(C).
    12. 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.
    13. Pels, Eric & Verhoef, Erik T., 2004. "The economics of airport congestion pricing," Journal of Urban Economics, Elsevier, vol. 55(2), pages 257-277, March.
    14. Li, Zhi-Chun & Tu, Ningwen & Fu, Xiaowen & Sheng, Dian, 2022. "Modeling the effects of airline and high-speed rail cooperation on multi-airport systems: The implications on congestion, competition and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 448-478.
    15. Czerny, Achim I. & Zhang, Anming, 2014. "Airport congestion pricing when airlines price discriminate," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 77-89.
    16. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Access to and competition between airports: a case study for the San Francisco Bay area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(1), pages 71-83, January.
    17. Nicole Adler, 2005. "Hub-Spoke Network Choice Under Competition with an Application to Western Europe," Transportation Science, INFORMS, vol. 39(1), pages 58-72, February.
    18. Yu, De-Ping & Li, Zhi-Chun, 2023. "Income distribution, implementation sequence, and equity in auto ownership rationing," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 59-89.
    19. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    20. Hess, Stephane & Polak, John W., 2005. "Mixed logit modelling of airport choice in multi-airport regions," Journal of Air Transport Management, Elsevier, vol. 11(2), pages 59-68.
    21. Takebayashi, Mikio, 2018. "Managing airport charges under the multiple hub network with high speed rail: Considering capacity and gateway function," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 108-123.
    22. Achim I. Czerny, 2009. "Code-sharing, Price Discrimination and Welfare Losses," Journal of Transport Economics and Policy, University of Bath, vol. 43(2), pages 193-212, May.
    23. Xia, Wenyi & Zhang, Anming, 2016. "High-speed rail and air transport competition and cooperation: A vertical differentiation approach," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 456-481.
    24. Tu, Ningwen & Li, Zhi-Chun & Fu, Xiaowen & Lei, Zheng, 2020. "Airline network competition in inter-continental market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    25. Xia, Wenyi & Zhang, Anming, 2017. "Air and high-speed rail transport integration on profits and welfare: Effects of air-rail connecting time," Journal of Air Transport Management, Elsevier, vol. 65(C), pages 181-190.
    26. Hu, Rong & Huang, Mengyuan & Zhang, Junfeng & Witlox, Frank, 2023. "On the Matthew effect in a multi-airport system: Evidence from the viewpoint of airport green efficiency," Journal of Air Transport Management, Elsevier, vol. 106(C).
    27. Saraswati, Batari & Hanaoka, Shinya, 2014. "Airport–airline cooperation under commercial revenue sharing agreements: A network approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 17-33.
    28. Achim I. Czerny & Anming Zhang, 2015. "Third‐degree price discrimination in the presence of congestion externality," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(4), pages 1430-1455, November.
    29. Zhang, Anming & Fu, Xiaowen & Yang, Hangjun (Gavin), 2010. "Revenue sharing with multiple airlines and airports," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 944-959, September.
    30. Achim I. Czerny & Anming Zhang, 2015. "Third-degree price discrimination in the presence of congestion externality," Canadian Journal of Economics, Canadian Economics Association, vol. 48(4), pages 1430-1455, November.
    31. Hansen, Mark, 1990. "Airline competition in a hub-dominated environment: An application of noncooperative game theory," Transportation Research Part B: Methodological, Elsevier, vol. 24(1), pages 27-43, February.
    32. Li, Zhi-Chun & Sheng, Dian, 2016. "Forecasting passenger travel demand for air and high-speed rail integration service: A case study of Beijing-Guangzhou corridor, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 397-410.
    33. Czerny, Achim I. & Zhang, Anming, 2011. "Airport congestion pricing and passenger types," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 595-604, March.
    34. Noruzoliaee, Mohamadhossein & Zou, Bo & Zhang, Anming, 2015. "Airport partial and full privatization in a multi-airport region: Focus on pricing and capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 45-60.
    35. Wang, Judith Y.T. & Yang, Hai, 2005. "A game-theoretic analysis of competition in a deregulated bus market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(4), pages 329-355, July.
    36. Takebayashi, Mikio & Yamaguchi, Hiromichi, 2022. "Managing a multiple-gateway airport system with super high-speed rail," Journal of Air Transport Management, Elsevier, vol. 99(C).
    37. Yang, Hai & Yan Kong, Hoi & Meng, Qiang, 2001. "Value-of-time distributions and competitive bus services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(6), pages 411-424, December.
    38. 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.
    39. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen, 2019. "Modeling the effects of airline slot hoarding behavior under the grandfather rights with use-it-or-lose-it rule," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 48-61.
    40. Li, Zhi-Chun & Wu, Qiao-Yu & Yang, Hai, 2019. "A theory of auto ownership rationing," Transportation Research Part B: Methodological, Elsevier, vol. 127(C), pages 125-146.
    41. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2015. "Would competition between air transport and high-speed rail benefit environment and social welfare?," Transportation Research Part B: Methodological, Elsevier, vol. 74(C), pages 118-137.
    42. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2000. "Airport and Airline Competition for Passengers Departing from a Large Metropolitan Area," Journal of Urban Economics, Elsevier, vol. 48(1), pages 29-45, July.
    43. Se-il Mun & Yusuke Teraji, 2012. "The Organisation of Multiple Airports in a Metropolitan Area," Journal of Transport Economics and Policy, University of Bath, vol. 46(2), pages 221-237, May.
    44. Mogens Fosgerau, 2005. "Unit income elasticity of the value of travel time savings," Urban/Regional 0508007, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Zhi-Chun & Tu, Ningwen & Fu, Xiaowen & Sheng, Dian, 2022. "Modeling the effects of airline and high-speed rail cooperation on multi-airport systems: The implications on congestion, competition and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 448-478.
    2. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    3. Gong, Zhenwei & Zhang, Fangni & Liu, Wei & Graham, Daniel J., 2023. "On the effects of airport capacity expansion under responsive airlines and elastic passenger demand," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 48-76.
    4. Avenali, Alessandro & D’Alfonso, Tiziana & Reverberi, Pierfrancesco, 2025. "Airline-High speed rail cooperation, hub congestion, and airport conduct," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 194(C).
    5. Zhang, Anming & Wan, Yulai & Yang, Hangjun, 2019. "Impacts of high-speed rail on airlines, airports and regional economies: A survey of recent research," Transport Policy, Elsevier, vol. 81(C), pages 1-19.
    6. Hou, Shuhua & Zhang, Zhen & Peng, Jiaxin & Chen, Xin, 2025. "Multi-airport system management strategies considering air-rail intermodality and social welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 194(C).
    7. Sun, Xiaoqian & Zheng, Changhong & Li, Jiachang & Jiang, Changmin & Zhang, Anming & Wandelt, Sebastian, 2024. "A review on research regarding HSR interactions with air transport and outlook for future research challenges," Transport Policy, Elsevier, vol. 157(C), pages 74-85.
    8. Takebayashi, Mikio & Yamaguchi, Hiromichi, 2022. "Managing a multiple-gateway airport system with super high-speed rail," Journal of Air Transport Management, Elsevier, vol. 99(C).
    9. Wang, Yixiao & Pels, Eric & Teunter, Ruud H. & Sun, Luoyi & Wu, Jianhong, 2023. "Railway liberalization, airport congestion toll, and infrastructure pricing: Modelling and numerical analysis for European and Chinese markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    10. Zuo, Yufan & Liu, Tian-Liang & Liu, Wei, 2025. "On the competition and collaboration in a multi-airport system considering ground connection between airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 192(C).
    11. Takebayashi, Mikio, 2021. "Workability of a multiple-gateway airport system with a high-speed rail network," Transport Policy, Elsevier, vol. 107(C), pages 61-71.
    12. Jiang, Mei & Jiang, Changmin & Xiao, Yi-bin & Wang, Chunan, 2021. "Air-HSR cooperation: Impacts on service frequency and environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    13. Jiang, Changmin, 2021. "Aviation tax and railway subsidy: An integrated policy," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 1-13.
    14. Zhu, Feng & Wu, Xu & Cao, Chengxuan, 2021. "High-speed rail and air transport competition under high flight delay conditions in China: A case study of the Beijing-Shanghai corridor," Utilities Policy, Elsevier, vol. 71(C).
    15. Alessandro Avenali & Tiziana D'Alfonso & Alberto Nastasi & Pierfrancesco Reverberi, 2019. "High-speed rail and air transport integration in hub-and-spoke networks. The role of airports," DIAG Technical Reports 2019-09, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    16. Cheung, Tommy King-Yin & Wong, Wai-hung & Zhang, Anming & Wu, Yangming, 2020. "Spatial panel model for examining airport relationships within multi-airport regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 148-163.
    17. Takebayashi, Mikio & Onishi, Masamitsu, 2018. "Managing reliever gateway airports with high-speed rail network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 133-146.
    18. Zhang, Anming & Czerny, Achim I., 2012. "Airports and airlines economics and policy: An interpretive review of recent research," Economics of Transportation, Elsevier, vol. 1(1), pages 15-34.
    19. 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.
    20. Wang, Yingzhi & Jiang, Xiushan & Ma, Jihui, 2025. "Emissions reduction of air transport and high-speed rail with policy intervention considering the modal competition in a network market: Environment and welfare implications," Transport Policy, Elsevier, vol. 162(C), pages 379-395.

    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:transb:v:195:y:2025:i:c:s019126152500044x. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.