How Do Airlines React to Airport Congestion? The Role of Networks

Xavier Fageda and Ricardo Flores-Fillol

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: In this paper, we investigate the relationship between airline network structure and airport congestion. More specifically, we study the ways in which airlines adjust frequencies to delays (as a measure of airport congestion) depending on the network type they operate. Our results suggest that network structure has a fundamental impact. Thus, while airlines operating fully-connected configurations reduce frequencies in response to more frequent delays, airlines operating hub-and-spoke structures increase frequencies. Therefore, network airlines have incentives to keep frequencies high even if this is at the expense of a greater congestion at their hub airports. This result sheds light on previously unclear results in the literature. Keywords: airline networks; airport congestion; delays. JEL Classification Numbers: L13; L93; R41.

Keywords: Aeroports; Aviació comercial; Oligopolis; Transport; 338 - Situació econòmica. Política econòmica. Gestió; control i planificació de l'economia. Producció. Serveis. Turisme. Preus (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-com, nep-gth, nep-net, nep-tre and nep-ure
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http://hdl.handle.net/2072/260960

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Journal Article: How do airlines react to airport congestion? The role of networks (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/260960

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