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Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market

Valeria Bernardo and Xavier Fageda

Transport Policy, 2020, vol. 96, issue C, 141-151

Abstract: This paper examines the effects of competition driven by low-cost airlines and high-speed trains on long-haul connecting routings. We use passenger and fare data for 2010–2017 on transatlantic routings with a stopover in large European hub airports. Competition from low-cost airlines on the short segments of transatlantic routings reduces the number of connecting passengers channeled by hubbing airlines, who have to pay higher fares. In contrast, high-speed rail services are not found to lead to a reduction in the number of connecting passengers or to an increase in the price they have to pay.

Keywords: Network airlines; Low-cost airlines; High-speed rails; Competition; Connecting routings; Passengers; Fares (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.tranpol.2020.06.005

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