PASSENGER LEAKS AND THE FATE OF SMALL COMMUNITY AIR SERVICE

Owen R. Phillips · Larry R. Weatherford · Charles F. Mason · Mitch Kunce

21 citations0/0 files storedEconomic Inquiry

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Aviation Industry Analysis and Trends Transportation Planning and Optimization Air Traffic Management and Optimization

Abstract

Using airline‐booking data from Sabre, this article documents the proportion of passengers who drive and fly from a hub airport, rather than take a commuter flight. If fewer passengers leaked to a hub, community airports would have more enplanements. Price and quality factors affecting leaks are econometrically estimated for the state of Wyoming. Fare differences, distance between the local airport and hub and the proportion of regional jets making the hub connection are important determinants. Short‐run elasticities are estimated to measure the sensitivity of local air travelers to these factors. Leaks increased after September 11, 2001. (JEL L52, L93)

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References

1989Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry 2009Consumer Demand in the United States 1993The competitive consequences of hub dominance: A case study

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