The impact of airport fees on fares for the leisure air travel market: The case of Spain

Sainz-González, Rubén, Núnez-Sánchez, Ramón and Coto-Millán, Pablo

Journal of Air Transport Management, 2011, vol. 17, issue 3, 158-162

Abstract: Panel data is used to determine the incidence of airport fees on fares in the Spanish leisure market airlines. We also study its structure through an empirical specification of a pricing and demand equation system. The results show the existence of market power, strategic behavior and density economics. We also demonstrate that airlines pass all the airport fees onto customers by increasing fares. Furthermore, we find that the behavior of airlines in routes with the presence of low cost carriers do not differ from other routes.

Keywords: Airport fees; Airline market; Price elasticity of demand; Low cost carriers (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:17:y:2011:i:3:p:158-162

DOI: 10.1016/j.jairtraman.2010.12.003

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