Air services on thin routes: Regional versus low-cost airlines
Xavier Fageda and
Ricardo Flores-Fillol
Working Papers from Universitat Rovira i Virgili, Department of Economics
Abstract:
An examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes - regional jet technology and the low-cost business model - reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies). Keywords: air transportation; regional jet technology; low-cost business model; thin markets. JEL Classification Numbers: L13; L2; L93.
Keywords: Línies aèries; Aviació comercial; 338 - Situació econòmica. Política econòmica. Gestió; control i planificació de l'economia. Producció. Serveis. Turisme. Preus (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-eur, nep-tre, nep-tur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/2072/179624
Related works:
Journal Article: Air services on thin routes: Regional versus low-cost airlines (2012) 
Working Paper: Air services on thin routes: Regional versus low-cost airlines (2011) 
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:urv:wpaper:2072/179624
Access Statistics for this paper
More papers in Working Papers from Universitat Rovira i Virgili, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ariadna Casals ().