Does competition influence airline on-time performance?

Nicholas G. Rupp · Douglas H. Owens · L. Wayne Plumly

60 citations0/0 files storedRePEc: Research Papers in Economics

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Aviation Industry Analysis and Trends Air Traffic Management and Optimization Transport and Economic Policies

Abstract

Airlines have attracted congressional scrutiny due to recent mergers, failed mergers, and poor on-time performance. This wave of consolidation has ramications beyond air fares. We investigate how route competition in°uences on-time performance. Data obtained from the Bureau of Transportation Statistics includefty nonstop domestic city-pairs for forty-eight months from 1997 to 2000. The paper analyzes both the frequency and magnitude of °ight delays using a three-wayxed e®ects error component model. Wend more competitive routes have worse on-time performance. Other important factors include seasonal e®ects, airport capacity constraints, the number of scheduled °ights, hub originations, and prior month's performance.

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1993MERGERS AND MARKET POWER -- EVIDENCE FROM THE AIRLINE INDUSTRY.1989Enhancing the Performance of the Deregulated Air Transportation System 1999Why do all the flights leave at 8 am?: Competition and departure-time differentiation in airline markets

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