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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

Abstract: 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) Downloads
Working Paper: Air services on thin routes: Regional versus low-cost airlines (2011) Downloads
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