Economics at your fingertips  

Limited Access to Airport Facilities and Market Power in the Airline Industry

Federico Ciliberto () and Jonathan W. Williams

Journal of Law and Economics, 2010, vol. 53, issue 3, 467 - 495

Abstract: We investigate the role of limited access to airport facilities as a determinant of the hub premium in the U.S. airline industry. We use original data from competition plans that airports are required to submit to the U.S. Department of Transportation in compliance with the Aviation Investment and Reform Act for the Twenty-First Century. We collect information on the availability and control of airport gates, leasing arrangements, and other restrictions limiting the expansion of airport facilities. We find that the hub premium is increasing in the ticket fare. We find that control of gates is a crucial determinant of this premium. Limits on the fees that airlines can charge for subleasing their gates lower the prices charged by airlines. Finally, control of gates and restrictions on sublease fees explain high fares only when there is a scarcity of gates relative to the number of departures from an airport.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Limited Access to Airport Facilities and Market Power in the Airline Industry (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Journal of Law and Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

Page updated 2020-08-08
Handle: RePEc:ucp:jlawec:doi:10.1086/605725