Recovering Costs by Increasing Market Share: An Empirical Critique of the S-Curve
An S-shaped curve relating service frequency with market share of passengers is often claimed to explain why airlines seek to increase the frequency of their services. An increase in frequency beyond some point brings about a more than proportional increase in patronage and, indirectly, in revenue. If this is the approach of airlines, however, it may prove counterproductive and instead help to explain the tendency towards excess capacity that is often seen in many airline markets. Looking at a number of major US carriers from 1990 to 2003 and their domestic market shares at several large airports there is very little evidence of the existence of any sustained S-shaped relationship; the general pattern that emerges is of a broadly linear link between frequency and market share. © 2005 LSE and the University of Bath
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:39:y:2005:i:3:p:391-410. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.