Estimating the sensitivity of small airport catchments to competition from larger airports: A case study in Indiana

Yi Gao

20 citations0/0 files storedJournal of Transport Geography

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

Abstract

An accurate estimation of airport catchment area enables airlines and airport operators to make informed decisions and to target potential markets precisely. This study uses the state of Indiana as a case study to estimate traffic leakage from the local airport, Indianapolis International Airport (IND), to two large hub airports in Illinois, the neighboring state of Indiana, namely Chicago O'Hare International Airport (ORD) and Chicago Midway International Airport (MDW). By using a decision making model that considers flying cost and access cost, this study simulates from local passengers' perspective which origin airport delivers the most cost effective flight itinerary. Using the top 20 routes of IND in 2018 as model inputs, the catchment area of two Chicago based airports in Indiana with variable coverage is plotted for different traveling scenarios. The analysis shows that an airport catchment area is sensitive to location, service level and traffic volume of competing airports nearby, as well as purpose of travel (business or leisure), number of travelers in a group (single, couple, family or multiple), length of trip, destination (domestic or international), preference of airlines (network carrier or budget carrier), and frequent flyer program status (premier member or general member). These findings could be valuable to all three aforementioned airports as well as airlines serving these airports when allocating operational and marketing resources. More importantly, this study creates a generic model that could be used by virtually any airport to estimate scenario-based catchment area using readily available itinerary and spatial data without resorting to expensive passenger surveys.

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References

2001Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines 2007Gravity models for airline passenger volume estimation 2017The Impact of Low-Cost Carriers on Airport and Route Competition 2007Passengers’ airport choice within multi-airport regions (MARs): some insights from a stated preference survey at Hong Kong International Airport 2012Measuring the size of an airport’s catchment area 2009Regional airport choice: Consumer behaviour and policy implications 2006Airport catchment and leakage in a multi-airport region: The case of Harrisburg International 2011A passenger demand model for air transportation in a hub-and-spoke network

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