Airline baggage fees and flight delays: A floor wax and dessert topping?

Amirhossein A. Yazdi, Pritha Dutta and Adams B. Steven

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 104, issue C, 83-96

Abstract: We examine the linkages between the implementation of baggage fees and late flights in the airline industry. We find that baggage fees policies result in improvements in on-time performance as assessed through late flights, directly through improvements in airport-side sorting and loading efficiencies, and indirectly through lower air travel demand. We further find that these relationships are contingent upon the presence of a hub airport on a route. Our findings have important managerial and public policy implications as baggage fees have often been cited as a driver of security queue, aircraft alley, and overhead bin congestions, and ultimately delayed flights. Our results suggest that these suppositions could be misplaced.

Date: 2017
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DOI: 10.1016/j.tre.2017.06.002

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