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What hurts the dominant airlines at hub airports?

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  • Fageda, Xavier

Abstract

This paper estimates a frequency equation to explain the determinants of network airline service levels at their hub airports. Drawing on European data for 2002–2013, we find that network airlines reduce frequencies when the share of low-cost airlines increases both on the route and at the hub airport. On the contrary, frequency choices of network airlines are not affected by competition from low-cost airlines operating in nearby secondary airports. We also find some evidence that mergers in Europe may result in a re-organization of the route structure in favor of the hubs of the larger airline.

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  • 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.
    • Handle: RePEc:eee:transe:v:70:y:2014:i:c:p:177-189
    DOI: 10.1016/j.tre.2014.07.002
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    3. 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.
    4. Bernardo, Valeria & Fageda, Xavier, 2020. "Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market," Transport Policy, Elsevier, vol. 96(C), pages 141-151.
    5. Ivana Tománková, . "Determinants of Route Presence in the EU Airline Industry," Prague Economic Papers, University of Economics, Prague, vol. 0, pages 1-13.
    6. Calzada, Joan & Fageda, Xavier & Safronov, Roman, 2022. "How do global airline alliances affect flight frequency? Evidence from Russia," Journal of Air Transport Management, Elsevier, vol. 98(C).
    7. Ivana Tománková, 2017. "Determinants of Route Presence in the EU Airline Industry," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(1), pages 90-102.
    8. Fageda, Xavier & Fioravanti, Reinaldo & Ricover, Andy & Café, Eduardo & Ansaldo, Mariano, 2023. "Econometric analysis of the determinants of air cargo services supply in Latin America and the Caribbean," Transport Policy, Elsevier, vol. 135(C), pages 33-44.
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