 Airline operational disruptions and loss-reduction investmentKangoh Lee Transportation Research Part B: Methodological, 2023, vol. 177, issue C Abstract: Airlines have experienced disruptions from random shocks such as extreme weather conditions and airport congestion. Airlines thus have invested in improving their flight and scheduling system to minimize the losses from shocks. This paper analyzes the effects of the airline network structure on the incentives of airlines to invest in their operations system. The analysis shows that under reasonable conditions, the level of investment is higher under the hub-and-spoke network than under the fully-connected (or point-to-point) network, and airlines invest less than the efficient level that maximizes social welfare under the fully-connected network. In addition, flight frequency regulations decrease investment under either network. Keywords: Disruptions; Random shocks; Loss-reduction investment; Airline networks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:177:y:2023:i:c:s019126152300142x Ordering information: This journal article can be ordered from DOI: 10.1016/j.trb.2023.102817 Access Statistics for this article Transportation Research Part B: Methodological is currently edited by Fred Mannering More articles in Transportation Research Part B: Methodological from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.