A basic model was developed which is a two equation pair econometric system in which air passenger demand and airline level-of-service are the endogenous variables. The model aims to identify the relationship between each of these two variables and its determining factors, and to identify the interaction of demand and level-of-service with each other. The selected variable for the measure of air passenger traffic activity in a given pair market is defined as the number of passengers in a given time that originate in one region and fly to the other region for purposes other than to make a connection to a third region. For medium and long haul markets, the model seems to perform better for larger markets. This is due to a specification problem regarding the route structure variable. In larger markets, a greater percentage of nonlocal passengers are accounted for by this variable. Comparing the estimated fare elasticities of long and medium haul markets, it appears that air transportation demand is more price elastic in longer haul markets. Long haul markets demand will saturate with a fewer number of departures than will demand in medium haul markets.

  • Corporate Authors:

    Massachusetts Institute of Technology

    Department of Aeronautics and Astronautics, 77 Massachusetts Avenue
    Cambridge, MA  United States  02139
  • Authors:
    • ERIKSEN, S E
  • Publication Date: 1978

Media Info

  • Pagination: 75 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00198514
  • Record Type: Publication
  • Source Agency: National Technical Information Service
  • Report/Paper Numbers: NASA-CR-152156 Final Rpt.
  • Contract Numbers: NSG-2129
  • Files: TRIS
  • Created Date: Oct 17 1979 12:00AM