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How do airlines react to airport congestion? The role of networks

Xavier Fageda and Ricardo Flores-Fillol ()

Regional Science and Urban Economics, 2016, vol. 56, issue C, 73-81

Abstract: In this paper, we investigate the relationship between airline network structure and airport congestion. More specifically, we study the ways in which airlines adjust frequencies to delays (as a measure of airport congestion) depending on the network type they operate. Our results suggest that network structure has a fundamental impact. Thus, while airlines operating fully-connected configurations reduce frequencies in response to more frequent delays, airlines operating hub-and-spoke structures increase frequencies. Therefore, network airlines have incentives to keep frequencies high even if this is at the expense of a greater congestion at their hub airports. This result sheds light on previously unclear results in the literature.

Keywords: Airline networks; Airport congestion; Delays (search for similar items in EconPapers)
JEL-codes: L13 L93 R41 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:56:y:2016:i:c:p:73-81

DOI: 10.1016/j.regsciurbeco.2015.11.002

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