Airport slots and the internalization of congestion by airlines: An empirical model of integrated flight disruption management in Brazil
Victor A.P. Miranda and
Alessandro V.M. Oliveira
Transportation Research Part A: Policy and Practice, 2018, vol. 116, issue C, 201-219
This paper examines the relationship between the control of airport slots by major airlines and their incentives to engage in service quality. We investigate a set of airline strategies regarding possible practices of slot hoarding and slot concentration through mergers aiming at erecting airport barriers to entry. We develop an econometric model of flight disruptions by allowing an integrated management of flight delays, cancellations, aircraft size, price and passengers per flight. We consider the case of the domestic airline industry in Brazil. We find evidence of the internalization of congestion externalities by dominant carriers. We also have some evidence of schedule padding, a strategic trade-off between delays and cancelations, and slot hoarding following a merger. Our results suggest that carriers intensify the internalization of congestion externalities when slot flight concentration increases.
Keywords: Airlines; Airports; Slots; Congestion externalities; Econometrics (search for similar items in EconPapers)
JEL-codes: D22 L11 L93 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:116:y:2018:i:c:p:201-219
Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01
Access Statistics for this article
Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose
More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().