Determinants of air travel demand: The role of low-cost carriers, ethnic links and aviation-dependent employment

Thijs Boonekamp, Joost Zuidberg and Guillaume Burghouwt

Transportation Research Part A: Policy and Practice, 2018, vol. 112, issue C, 18-28

Abstract: This paper presents a comprehensive gravity model in which the most important determinants for air travel demand have been identified using a two-stage least squares technique. Besides including the standard demand factors like GDP, population and tourism, the effects of other determinants such as domestic traffic, low-cost carrier (LCC) activity and public service obligations are also estimated. The profound contribution of the paper lies in the inclusion of two innovative variables in the estimations: ethnic links and aviation-dependent employment. The econometric results show that both ethnic links between countries and the share of aviation-dependent employment increase passenger demand. Moreover, the results confirm that LCC presence leads to a significant increase in passenger demand, particularly on routes where Europe’s largest LCCs, Ryanair and easyJet, are active.

Keywords: Gravity modelling; Airline network potential; Low-cost carriers; Ethnic links; Aviation-dependent employment (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:112:y:2018:i:c:p:18-28

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DOI: 10.1016/j.tra.2018.01.004

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