IDEAS home Printed from https://ideas.repec.org/p/irv/wpaper/070803.html
   My bibliography  Save this paper

On the Factors that Affect Airline Flight Frequency and Aircraft Size

Author

Listed:
  • Vivek Pai

    () (Department of Economics, University of California-Irvine)

Abstract

This paper assesses the determinants of aircraft size and frequency of flights on airline routes by considering market demographics, airport characteristics, airline characteristics and route characteristics. The paper shows that frequency and aircraft size increase with population, income, and runway length. An increase in the proportion of managerial workers in the labor force or the proportion of population below the age of 25 results in greater frequency with the use of small planes. Slot constrained airports and an increase in the number of nearby airports lead to lower flight frequency with the use of smaller planes. Hubs and low cost carriers are associated with larger plane sizes and higher frequency, while regional airline ownership leads to higher frequency and the use of smaller planes. An increase in distance between the endpoints leads to lower frequency with the use of larger planes. As airport delay rises, airlines reduce frequency and use smaller planes, though when airport cancellations rise, flight frequency increases with the use of larger planes. This finding suggests airlines utilize frequency and aircraft size to hedge against flight cancellations.

Suggested Citation

  • Vivek Pai, 2007. "On the Factors that Affect Airline Flight Frequency and Aircraft Size," Working Papers 070803, University of California-Irvine, Department of Economics.
  • Handle: RePEc:irv:wpaper:070803
    as

    Download full text from publisher

    File URL: https://www.economics.uci.edu/files/docs/workingpapers/2007-08/pai-03.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Wenbin Wei & Mark Hansen, 2003. "Cost Economics of Aircraft Size," Journal of Transport Economics and Policy, University of Bath, vol. 37(2), pages 279-296, May.
    2. Dresner, Martin & Windle, Robert & Zhou, Ming, 2002. "Regional jet services: supply and demand," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 267-273.
    3. Bhadra, Dipasis, 2005. "Choice of Aircraft Fleets in the U.S. Domestic Scheduled Air Transportation System: Findings from a Multinomial Logit Analysis," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 44(3).
    4. Nicholas G. Rupp & George M. Holmes, 2006. "An Investigation into the Determinants of Flight Cancellations," Economica, London School of Economics and Political Science, vol. 73(292), pages 749-783, November.
    5. Jan K. Brueckner, 2004. "Network Structure and Airline Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 291-312, June.
    6. Babikian, Raffi & Lukachko, Stephen P. & Waitz, Ian A., 2002. "The historical fuel efficiency characteristics of regional aircraft from technological, operational, and cost perspectives," Journal of Air Transport Management, Elsevier, vol. 8(6), pages 389-400.
    7. Martin Dresner & Robert Windle & Yuliang Yao, 2002. "Airport Barriers to Entry in the US," Journal of Transport Economics and Policy, University of Bath, vol. 36(3), pages 389-405, September.
    8. Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(3), pages 161-177, May.
    9. Brueckner, Jan K. & Pai, Vivek, 2009. "Technological innovation in the airline industry: The impact of regional jets," International Journal of Industrial Organization, Elsevier, vol. 27(1), pages 110-120, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:touman:v:61:y:2017:i:c:p:465-471 is not listed on IDEAS
    2. 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.
    3. Fageda, Xavier & Suau-Sanchez, Pere & Mason, Keith J., 2015. "The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 289-296.
    4. Kuangnen Cheng & Hui-Ping Chen & Jason Lee, 2015. "Competition behavior in service frequency for U.S. airlines," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 1-16, March.
    5. repec:eee:jaitra:v:62:y:2017:i:c:p:10-17 is not listed on IDEAS
    6. Brueckner, Jan K. & Luo, Dan, 2014. "Measuring strategic firm interaction in product-quality choices: The case of airline flight frequency," Economics of Transportation, Elsevier, vol. 3(1), pages 102-115.
    7. Fageda, Xavier & Flores-Fillol, Ricardo, 2016. "How do airlines react to airport congestion? The role of networks," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 73-81.
    8. Kölker, Katrin & Bießlich, Peter & Lütjens, Klaus, 2016. "From passenger growth to aircraft movements," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 99-106.
    9. Fukui, Hideki, 2012. "Do carriers abuse the slot system to inhibit airport capacity usage? Evidence from the US experience," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 1-6.
    10. Dožić, Slavica & Kalić, Milica, 2015. "Three-stage airline fleet planning model," Journal of Air Transport Management, Elsevier, vol. 46(C), pages 30-39.
    11. Fukui, Hideki, 2014. "Effect of slot trading on route-level competition: Evidence from experience in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 124-141.
    12. Volodymyr Bilotkach, 2011. "Multimarket Contact and Intensity of Competition: Evidence from an Airline Merger," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(1), pages 95-115, January.
    13. Volodymyr Bilotkach & Kai Hüschelrath, 2013. "Airline Alliances, Antitrust Immunity, and Market Foreclosure," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1368-1385, October.
    14. Joan Calzada & Xavier Fageda, 2012. "Discounts and Public Service Obligations in the Airline Market: Lessons from Spain," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(4), pages 291-312, June.
    15. Fageda, Xavier & Flores-Fillol, Ricardo, 2012. "Air services on thin routes: Regional versus low-cost airlines," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 702-714.
    16. Sternberg, Alice & Carvalho, Diego & Murta, Leonardo & Soares, Jorge & Ogasawara, Eduardo, 2016. "An analysis of Brazilian flight delays based on frequent patterns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 282-298.
    17. Wang, Kun & Gong, Qiang & Fu, Xiaowen & Fan, Xingli, 2014. "Frequency and aircraft size dynamics in a concentrated growth market: The case of the Chinese domestic market," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 50-58.
    18. repec:eee:jaitra:v:66:y:2018:i:c:p:42-52 is not listed on IDEAS
    19. Zou, Bo & Hansen, Mark, 2014. "Flight delay impact on airfare and flight frequency: A comprehensive assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 54-74.
    20. Calzada, Joan & Fageda, Xavier, 2014. "Competition and public service obligations in European aviation markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 104-116.
    21. Brueckner, Jan K. & Abreu, Chrystyane, 2017. "Airline fuel usage and carbon emissions: Determining factors," Journal of Air Transport Management, Elsevier, vol. 62(C), pages 10-17.
    22. Aliya Ussinova & Isabelle Laplace & Chantal Latgé-Roucolle, 2018. "An analysis of the impact of larger aircraft (A-380) on flight frequency," Post-Print hal-01682632, HAL.

    More about this item

    Keywords

    Airline; Frequency; Aircraft size; Markets;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:irv:wpaper:070803. 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: (Jennifer dos Santos). General contact details of provider: http://edirc.repec.org/data/deucius.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.