Air services on thin routes: Regional versus low-cost airlines
Xavier Fageda and
Ricardo Flores-Fillol ()
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Ricardo Flores-Fillol: Universitat Rovira i Virgili
No 201123, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics
An examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes - regional jet technology and the low-cost business model - reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies).
Keywords: air transportation; regional jet technology; low-cost business model; thin markets JEL classification:L13; L2; L93 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2011-10, Revised 2011-10
New Economics Papers: this item is included in nep-eur and nep-ure
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Journal Article: Air services on thin routes: Regional versus low-cost airlines (2012)
Working Paper: Air services on thin routes: Regional versus low-cost airlines (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201123
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