By: |
Fageda, Xavier, 1975-;
Flores-Fillol, Ricardo |
Abstract: |
This paper provides a theoretical and empirical analysis of the relationship
between airport congestion and airline network structure. We find that the
development of hub-and-spoke (HS) networks may have detrimental effects on
social welfare in presence of airport congestion. The theoretical analysis
shows that, although airline pro ts are typically higher under HS networks,
congestion could create incentives for airlines to adopt fully-connected (FC)
networks. However, the welfare analysis leads to the conclusion that airlines
may have an inefficient bias towards HS networks. In line with the theoretical
analysis, our empirical results show that network airlines are weakly infl
uenced by congestion in their choice of frequencies from/to their hub
airports. Consistently with this result, we con firm that delays are higher in
hub airports controlling for concentration and airport size. Keywords:
airlines; airport congestion; fully-connected networks, hub-and-spoke net-
works; network efficiency JEL Classifi cation Numbers: L13; L2; L93 |
Keywords: |
Línies aèries, Aeroports -- Direcció i administració, Oligopolis, Empreses -- Direcció i administració, Aviació comercial, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus, |
Date: |
2012 |
URL: |
http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211753&r=tur |