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Do low cost carriers provide low quality service?

Author

Listed:
  • Nicholas G. Rupp

    (Department of Economics, East Carolina University. Greenville, NC 27858-4353, U.S.A.)

  • Tejashree Sayanak

    (Department of Economics, Southern Illinois University. Carbondale, IL 62901, U.S.A.)

Abstract

This paper addresses the question of whether low cost carriers provide low quality service. Considerable work has been done on various aspects of airline service quality, including: examining the causes of flight delays and cancellations, investigating service quality during irregular airport operations, and exploring the link between on-time performance and airline ticket prices. Little research has been conducted, however, on the performance of low cost carriers. This paper attempts to fill this void in the literature by examining the on-time performance of six million domestic flights in 2006. We find considerable evidence indicating that low cost carriers offer more reliable flight schedules.

Suggested Citation

  • Nicholas G. Rupp & Tejashree Sayanak, 2008. "Do low cost carriers provide low quality service?," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 23(1), pages 3-20, June.
    • Handle: RePEc:ila:anaeco:v:23:y:2008:i:1:p:3-20
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    Citations

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    Cited by:

    1. Chen, Yongmin & Gayle, Philip G., 2019. "Mergers and product quality: Evidence from the airline industry," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 96-135.
    2. Yimga, Jules, 2017. "Airline on-time performance and its effects on consumer choice behavior," Research in Transportation Economics, Elsevier, vol. 66(C), pages 12-25.
    3. William E. Bendinelli & Humberto F. A. J. Bettini & Alessandro V. M. Oliveira, 2024. "Airline delays, congestion internalization and non-price spillover effects of low cost carrier entry," Papers 2401.09174, arXiv.org.
    4. 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.
    5. Yimga, Jules O., 2017. "Airline code-sharing and its effects on on-time performance," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 76-90.
    6. 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.
    7. Yimga, Jules, 2022. "Code-sharing agreements and path quality in the US airline industry," Transport Policy, Elsevier, vol. 116(C), pages 369-385.
    8. Mariana Nicolae & Mazhar Arıkan & Vinayak Deshpande & Mark Ferguson, 2017. "Do Bags Fly Free? An Empirical Analysis of the Operational Implications of Airline Baggage Fees," Management Science, INFORMS, vol. 63(10), pages 3187-3206, October.

    More about this item

    Keywords

    Service Quality; Low Cost Carriers; Flight Delays.;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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