Airline competition and network structure

This paper studies airline networks and their welfare implications in an unregulated environment. Competing airlines may adopt either fully-connected (FC) or hub-and-spoke (HS) network structures; and passengers exhibiting low brand loyalty to their preferred carrier choose an outside option to travel so that markets are partially served by airlines. In this context, carriers adopt hubbing strategies when costs are sufficiently low, and asymmetric equilibria where one carrier chooses a FC strategy and the other chooses a HS strategy may arise. Quite interestingly, flight frequency can become excessive under HS network configurations.

• Record URL:
  http://www.sciencedirect.com/science/article/B6V99-4W68DR8-1/2/45ed6bd0a30a2afe2067724a4ef10e5d
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier
• Authors:
  • Flores-Fillol, Ricardo
• Publication Date: 2009-12

Language

• English

Media Info

• Media Type: Print
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 966-983
• Serial:
  • Transportation Research Part B: Methodological
  • Volume: 43
  • Issue Number: 10
  • Publisher: Elsevier
  • ISSN: 0191-2615
  • Serial URL: http://www.sciencedirect.com/science/journal/01912615

Subject/Index Terms

• TRT Terms: Airlines; Competition; Consumer preferences; Costs; Networks; Regulations
• Uncontrolled Terms: Flight frequency
• Subject Areas: Administration and Management; Aviation; Operations and Traffic Management;

Filing Info

• Accession Number: 01142879
• Record Type: Publication
• Files: TRIS
• Created Date: Oct 30 2009 9:25AM