Airport and Airline Substitution Effects in Multi-Airport Markets

Dan Mahoney and Wesley Wilson

A chapter in The Economics of International Airline Transport, 2014, vol. 4, pp 309-337 from Emerald Group Publishing Limited

Abstract: Airline travel is composed of business and nonbusiness travelers, each with different preferences that give rise to differences in demand elasticities and substitution not only across airlines but also airports. In this study, we develop and estimate a model of airline wherein consumers choose which airports and airline to use that allows for unobserved differences between travelers (e.g., business and nonbusiness travelers). The results point to the role that airports themselves play in the ultimate selection of a flight, and that there are strong interactive effects between the airlines’ networks and the consumers’ preferences across airports.

Keywords: Airline demand, airline and airport substitution, choice modeling, L93; R4 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aiaezz:s2212-160920140000004011

DOI: 10.1108/S2212-160920140000004011

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