Revenue and operational impacts of depeaking at U.S. hub airports
Historically, peaked schedules have been used with hub-and-spoke networks to maximize passenger connection opportunities. Although peaked schedules can generate more attractive connecting itineraries and revenue for an airline, they are costly to operate because additional manpower and equipment resources are needed to serve the peak periods. Several airlines experimented with depeaking their hubs as a way to reduce costs and improve operations in the 2000s. Prior studies have quantified operational improvements and cost savings associated with depeaking; however, none have quantified revenue impacts. The authors use difference-in-differences methods to quantify revenue and operational impacts associated with depeaking for five U.S. hubs. Results show that depeaking tends to improve operations, but may negatively impact revenue per available seat mile (RASM). In some cases, revenue losses exceed reported cost savings.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
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Supplemental Notes:
- Abstract reprinted with permission by Elsevier.
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Authors:
- Katz, Donald S
- Garrow, Laurie A
- Publication Date: 2014-1
Language
- English
Media Info
- Media Type: Print
- Features: Figures; References; Tables;
- Pagination: pp 57-64
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Serial:
- Journal of Air Transport Management
- Volume: 34
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 0969-6997
- Serial URL: http://www.sciencedirect.com/science/journal/09696997
Subject/Index Terms
- TRT Terms: Airlines; Airport operations; Airports; Hubs; Off peak periods; Revenues; Schedules and scheduling
- Geographic Terms: United States
- Subject Areas: Aviation; Finance; Operations and Traffic Management; I10: Economics and Administration; I72: Traffic and Transport Planning;
Filing Info
- Accession Number: 01504941
- Record Type: Publication
- Files: TRIS
- Created Date: Jan 27 2014 10:45AM