Market clustering and performance of U.S. OD markets

Alex Cosmas, Robert Love, Swapnil Rajiwade and Marco Linz

Journal of Air Transport Management, 2013, vol. 28, issue C, 20-25

Abstract: We segment the U.S. OD markets into peer groups, using a statistical cluster analysis on OD city-pair data on the basis of market concentration, passenger volume and yield. The results show: 1) that high yield markets have, on average, consistently underperformed the industry in both passenger and revenue growth, whereas low yield markets have led the industry in both areas; and 2) mid-sized ODs have experienced higher average growth and lower volatility than the largest U.S. domestic ODs, which have accounted for the least revenue per passenger as compared to all other market types. Financial portfolio analysis indicates the prospect of long-term decision making based on OD market risk and return rather than the aggregated market share analysis used by airlines today.

Keywords: U.S. airline markets; Cluster analysis; OD performance; Network planning; Financial portfolio theory (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969699712001597
Full text for ScienceDirect subscribers only

Related works:
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:eee:jaitra:v:28:y:2013:i:c:p:20-25

DOI: 10.1016/j.jairtraman.2012.12.006

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().