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The Economics of Direct Flights

Author

Listed:
  • Edwin Fujii
  • Eric Im
  • James Mak

    (Department of Economics, University of Hawaii at Manoa)

Abstract

Many tourist industry officials often lobby their local governments to invest heavily airport infrastructure (e.g. longer runways and larger terminals) in order to accommodate direct flights. We evaluate the impact of the recent initiation of direct flights from the U.S. west coast to Hawaii's neighbor islands, bypassing the previous hub, Honolulu, using interrupted time series analysis. We find a significant, though modest, increase in neighbor island travel. Direct flights may not always generate enough additional travel demand to warrant those investments.

Suggested Citation

  • Edwin Fujii & Eric Im & James Mak, 1989. "The Economics of Direct Flights," Working Papers 198919, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:198919
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/88-98/WP_89-19R.pdf
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    References listed on IDEAS

    as
    1. Clotfelter, Charles T., 1978. "Private security and the public safety," Journal of Urban Economics, Elsevier, vol. 5(3), pages 388-402, July.
    2. Severin Borenstein, 1989. "Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 344-365, Autumn.
    3. Steven A. Morrison & Clifford Winston, 1989. "Enhancing the Performance of the Deregulated Air Transportation System," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989 Micr), pages 61-123.
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