A three-stage competition game in an air transport network under asymmetric valuation of flight frequencies
Pedro Cantos-Sánchez (),
Rafael Moner-Colonques and
José Sempere-Monerris ()
Authors registered in the RePEc Author Service: Óscar Álvarez San-Jaime ()
Economics of Transportation, 2020, vol. 21, issue C
This paper analyzes the effects of changes in aeronautical charges as brought by several airport management regimes on the air transport industry. Airlines compete on both price and non-prices variables, where connecting passengers have asymmetric valuations of flight frequencies in different legs. Changes in landing fees trigger airlines reactions on flight frequencies and airfares, whose sign depends on the weight attached to flight frequencies. Thus, an increase in the spoke landing fee leads to more international flights under low valuations of frequencies at spoke airports. Simulation exercises show that profit-maximizing aeronautical charges only at the spoke airport are preferable to those either only at the hub airport or at both airports. Welfare losses are lower when airports are granted to a unique infrastructure manager rather than to independent ones. When frequencies in the hub are highly valued, profit-maximizing charges only at the spoke airport will likely induce a welfare increase.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: A three-stage competition game in an air transport network under asymmetric valuation of flight frequencies (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:21:y:2020:i:c:s2212012218301114
Access Statistics for this article
Economics of Transportation is currently edited by Mogens Fosgerau and Erik Verhoef
More articles in Economics of Transportation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().