How Do Airlines React to Airport Congestion? The Role of Networks
Xavier Fageda and
Working Papers from Universitat Rovira i Virgili, Department of Economics
In this paper, we investigate the relationship between airline network structure and airport congestion. More specifically, we study the ways in which airlines adjust frequencies to delays (as a measure of airport congestion) depending on the network type they operate. Our results suggest that network structure has a fundamental impact. Thus, while airlines operating fully-connected configurations reduce frequencies in response to more frequent delays, airlines operating hub-and-spoke structures increase frequencies. Therefore, network airlines have incentives to keep frequencies high even if this is at the expense of a greater congestion at their hub airports. This result sheds light on previously unclear results in the literature. Keywords: airline networks; airport congestion; delays. JEL Classification Numbers: L13; L93; R41.
Keywords: Aeroports; Aviació comercial; Oligopolis; Transport; 338 - Situació econòmica. Política econòmica. Gestió; control i planificació de l'economia. Producció. Serveis. Turisme. Preus (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-gth, nep-net, nep-tre and nep-ure
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Journal Article: How do airlines react to airport congestion? The role of networks (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/260960
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