What hurts the dominant airlines at hub airports?
No 201414, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics
This paper estimates a frequency equation to explain the determinants of network airline service levels at their hub airports. Drawing on European data for 2002-2013, we find that network airlines reduce frequencies when the share of low-cost airlines increases both on the route and at the hub airport. On the contrary, frequency choices of network airlines are not affected by competition from low-cost airlines operating in nearby secondary airports. We also find some evidence that mergers in Europe may result in a re-organization of the route structure in favor of the hubs of the larger airline.
Keywords: hub airports; competition; network airlines; low-cost airlines JEL classification: (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-05, Revised 2014-05
New Economics Papers: this item is included in nep-com, nep-eur, nep-tre and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201414
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