Is developing air cargo airports in the hinterland the way of the future?

Andrew Yuen, Anming Zhang, Yer Van Hui, Lawrence C. Leung and Michael Fung

Journal of Air Transport Management, 2017, vol. 61, issue C, 15-25

Abstract: In this paper, we provide an analytical framework to capture the competition (and cooperation) between gateway and hinterland airports. We first investigate how airport charges at gateway and hinterland airports affect the equilibrium output in passenger and cargo markets. We further consider the Pearl River Delta region in China as a setting to conduct a numerical analysis. We find that the introduction of a hinterland airport is likely to lead to an improvement in the aggregate welfare of the gateway and the hinterland. If the connectivity between the gateway and hinterland airports is improved, then social welfare at the gateway and hinterland, benefits for shippers and passengers, and airport and airline profits at the gateway airport will increase. However, airport and airline profits at the hinterland airport will decrease.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S096969971530137X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:61:y:2017:i:c:p:15-25

DOI: 10.1016/j.jairtraman.2016.09.009

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().