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Air Travel Choices in Multi-Airport Markets

Jun Ishii, Sunyoung Jun () and Kurt Van Dender ()
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Sunyoung Jun: Department of Economics, University of California-Irvine
Kurt Van Dender: Department of Economics, University of California-Irvine

No 50622, Working Papers from University of California-Irvine, Department of Economics

Abstract: We estimate a conditional logit model to measure the impact of airport and airline supply characteristics on the air travel choices of passengers departing from one of three San Francisco Bay area airports and arriving at one of four airports in greater Los Angeles in October 1995. Non-price characteristics like airport access time, airport delay, flight frequency, the availability of particular airport-airline combinations, and early arrival times are found to strongly affect choice probabilities. Marginal effects and counterfactual scenarios suggest that changes access in times affect travel choices more than changes in travel delays, and that the preferred airport differs by passenger type. In order to examine the robustness of the conditional logit model, we estimate a mixed logit model, and find that the results are similar. We attribute the similarity to our strictly defined travel market and to our distinction between leisure and business travelers, thus controlling for two important sources of consumer heterogeneity.

Keywords: Airports; Airlines; Air travel demand; Discrete choice (search for similar items in EconPapers)
JEL-codes: L11 L15 L93 R41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-dcm, nep-tur and nep-ure
Date: 2006-02
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Journal Article: Air travel choices in multi-airport markets (2009) Downloads
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