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How Can the Effects of the Introduction of a New Airline on a National Airline Network be Measured? A Time Series Approach for the Ryanair Case in Spain


  • José I. Castillo-Manzano
  • Lourdes López-Valpuesta
  • Diego J. Pedregal


This paper quantifies the Ryanair Effect on the Spanish airline network. It proposes new methodology based on an advanced time series approach that allows both the direct and indirect effects of the incorporation of a new airline to be measured and that can be easily extrapolated to other airport systems. The findings show the mean indirect effect on other airlines, in absolute value, is 8.6 per cent of the total airport traffic, peaking at a maximum of almost 29 per cent. Also, surprisingly, there is found to be a negative indirect effect at only four of the ten airports analysed. © 2012 LSE and the University of Bath

Suggested Citation

  • José I. Castillo-Manzano & Lourdes López-Valpuesta & Diego J. Pedregal, 2012. "How Can the Effects of the Introduction of a New Airline on a National Airline Network be Measured? A Time Series Approach for the Ryanair Case in Spain," Journal of Transport Economics and Policy, University of Bath, vol. 46(2), pages 263-279, May.
  • Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:2:p:263-279

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    References listed on IDEAS

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    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. Dean H. Gatzlaff & Marc T. Smith, 1993. "The Impact of the Miami Metrorail on the Value of Residences near Station Locations," Land Economics, University of Wisconsin Press, vol. 69(1), pages 54-66.
    6. Bae, Chang-Hee Christine & Jun, Myung-Jin & Park, Hyeon, 2003. "The impact of Seoul's subway Line 5 on residential property values," Transport Policy, Elsevier, vol. 10(2), pages 85-94, April.
    7. Baum-Snow, Nathaniel & Kahn, Matthew E., 2000. "The effects of new public projects to expand urban rail transit," Journal of Public Economics, Elsevier, vol. 77(2), pages 241-263, August.
    8. Bowes, David R. & Ihlanfeldt, Keith R., 2001. "Identifying the Impacts of Rail Transit Stations on Residential Property Values," Journal of Urban Economics, Elsevier, vol. 50(1), pages 1-25, July.
    9. Stephen Gibbons & Stephen Machin, 2008. "Valuing school quality, better transport, and lower crime: evidence from house prices," Oxford Review of Economic Policy, Oxford University Press, vol. 24(1), pages 99-119, spring.
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    Cited by:

    1. Fageda, Xavier, 2014. "What hurts the dominant airlines at hub airports?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 177-189.
    2. repec:eee:transe:v:109:y:2018:i:c:p:190-204 is not listed on IDEAS
    3. José I. Castillo-Manzano & Mercedes Castro-Nuño & Lourdes Lopez-Valpuesta, 2015. "The relationship between public and private bicycle use: the case of Seville," ERSA conference papers ersa15p206, European Regional Science Association.
    4. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.

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