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Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market
Abstract This paper examines the effects of competition driven by low-cost airlines and high-speed trains on long-haul connecting routings. We use passenger and fare data for 2010–2017 on transatlantic routings with a stopover in large European hub airports. Competition from low-cost airlines on the short segments of transatlantic routings reduces the number of connecting passengers channeled by hubbing airlines, who have to pay higher fares. In contrast, high-speed rail services are not found to lead to a reduction in the number of connecting passengers or to an increase in the price they have to pay.
Highlights Competition by LCC and HSR on transatlantic connecting routes is examined. Competition from LCC on short segments lead to less connecting passengers. Competition from LCC on short segments lead to higher fares. Airline competition in the long segments does not harm connecting travelers. Competition from HSR on short segments does not harm connecting travelers.
Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market
Abstract This paper examines the effects of competition driven by low-cost airlines and high-speed trains on long-haul connecting routings. We use passenger and fare data for 2010–2017 on transatlantic routings with a stopover in large European hub airports. Competition from low-cost airlines on the short segments of transatlantic routings reduces the number of connecting passengers channeled by hubbing airlines, who have to pay higher fares. In contrast, high-speed rail services are not found to lead to a reduction in the number of connecting passengers or to an increase in the price they have to pay.
Highlights Competition by LCC and HSR on transatlantic connecting routes is examined. Competition from LCC on short segments lead to less connecting passengers. Competition from LCC on short segments lead to higher fares. Airline competition in the long segments does not harm connecting travelers. Competition from HSR on short segments does not harm connecting travelers.
Impacts of competition on connecting travelers: Evidence from the transatlantic aviation market
Bernardo, Valeria (author) / Fageda, Xavier (author)
Transport Policy ; 96 ; 141-151
2020-06-11
11 pages
Article (Journal)
Electronic Resource
English
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