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Air services on thin routes: Regional versus low-cost airlines

Xavier Fageda and Ricardo Flores-Fillol ()

Regional Science and Urban Economics, 2012, vol. 42, issue 4, 702-714

Abstract: An examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes – regional jet technology and the low-cost business model – reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies).

Keywords: Air transportation; Regional jet technology; Low-cost business model; Thin markets (search for similar items in EconPapers)
JEL-codes: L13 L2 L93 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:702-714

DOI: 10.1016/j.regsciurbeco.2012.03.005

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