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The Hidden Cost of Airline Unpunctuality

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  • Andrew Cook
  • Graham Tanner
  • Adrian Lawes

Abstract

The 'soft' cost of delay - for example, loss of market share due to unpunctuality - is a dominant component in the economics of airline delay. Nevertheless, it remains poorly understood, with almost no quantitative costs published. Drawing on primary survey data and the literature, including Kano satisfaction factors, passenger airline-switching propensity is modelled. Using our peer-reviewed estimate of the average soft cost, we newly estimate its distribution as a function of delay duration. Policy implications emerging from the economics of punctuality target-setting and disruption management techniques are discussed. A shift in strategy from managing delay minutes to delay costs is proposed. © 2012 LSE and the University of Bath

Suggested Citation

  • Andrew Cook & Graham Tanner & Adrian Lawes, 2012. "The Hidden Cost of Airline Unpunctuality," Journal of Transport Economics and Policy, University of Bath, vol. 46(2), pages 157-173, May.
  • Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:2:p:157-173
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    Cited by:

    1. repec:eee:jaitra:v:63:y:2017:i:c:p:34-44 is not listed on IDEAS
    2. Lang, Fabian & Fink, Andreas & Brandt, Tobias, 2016. "Design of automated negotiation mechanisms for decentralized heterogeneous machine scheduling," European Journal of Operational Research, Elsevier, vol. 248(1), pages 192-203.
    3. repec:spr:annopr:v:245:y:2016:i:1:d:10.1007_s10479-014-1690-7 is not listed on IDEAS

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