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Air services on thin routes: Regional versus low-cost airlines

Xavier Fageda and Ricardo Flores-Fillol

Working Papers from Universitat Rovira i Virgili, Department of 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 Numbers: L13; L2; L93.

Keywords: Línies aèries; Aviació comercial; 338 - Situació econòmica. Política econòmica. Gestió; control i planificació de l'economia. Producció. Serveis. Turisme. Preus (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-eur, nep-tre, nep-tur and nep-ure
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http://hdl.handle.net/2072/179624

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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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