Determinants of Brazilian international flights: The role of hub-and-spoke and infrastructure variables

Fernando Seabra, Amir Mattar Valente, Leandro R. Silva, Rafaella Assis, Carla Acordi, Marcon, Aline Filéti and Martina Matte Bauer

Journal of Air Transport Management, 2020, vol. 89, issue C

Abstract: The objective of this study is to evaluate the determining factors influencing airline companies to operate international origin-destination (O-D) routes from different Brazilian airports. The results are based on a panel data model and support the assumption that statistically significant explanatory variables stem from gravity factors (GDP and an airport competition measure weighted by distance), hub-and-spoke variables and capacity inputs. We find that a composite variable made up by the airport capacity variables – given by the size of the terminal building and the length of runways – and its domestic connections have a positive effect on airport competitiveness. In conclusion, we find that not only well-known demand-side factors, but also supply-side variables – strategic decisions taken by airport management – matter in attracting international flights.

Keywords: Hub-and-spoke model; International flights; Airport infrastructure; Panel data model (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:89:y:2020:i:c:s0969699720304506

DOI: 10.1016/j.jairtraman.2020.101866

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