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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

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

Abstract

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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    Citations

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    Cited by:

    1. Bettini, Humberto F.A.J. & Silveira, José Maria F.J. & Oliveira, Alessandro V.M., 2018. "Estimating strategic responses to the march of a low cost carrier to primary airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 190-204.
    2. 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.
    3. 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.
    4. Castillo-Manzano, José I. & Fageda, Xavier & Gonzalez-Laxe, Fernando, 2014. "An analysis of the determinants of cruise traffic: An empirical application to the Spanish port system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 66(C), pages 115-125.
    5. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    6. Castillo-Manzano, José I. & López-Valpuesta, Lourdes & Pedregal, Diego J., 2012. "What role will hubs play in the LCC point-to-point connections era? The Spanish experience," Journal of Transport Geography, Elsevier, vol. 24(C), pages 262-270.

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