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Working paper

Publication date

2014

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cc-by-nc-nd, (c) Fageda et al., 2014
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/57510

What hurts the dominant airlines at hub airports?

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Abstract

This paper estimates a frequency equation to explain the determinants of network airline service levels at their hub airports. Drawing on European data for 2002 - 2013, we find that network airlines reduce frequencies when the share of low - cost airlines increases both on the route and at the hub airport. On the contrary, frequency choices of network airlines are not affected by competition from low - cost airlines operating in nearby secondary airports. We also find some evidence that mergers in Europe may result in a re - organization of the route structure in favor of the hubs of the larger airline.

Subject

Transport aeri, Competència econòmica, Logística industrial, Oligopolis

Subject (English)

Commercial aeronautics, Competition, Business logistics, Oligopolies

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Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))
Documents de treball / Informes (Econometria, Estadística i Economia Aplicada)

Citation

FAGEDA, Xavier. What hurts the dominant airlines at hub airports?. IREA – Working Papers. 2014. Vol.  IR14/14. ISSN 2014-1254. [consulted: 13 of June of 2026]. Available at: https://hdl.handle.net/2445/57510

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