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Working paper

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2011

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cc-by-nc-nd, (c) Fageda et al., 2011
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/58890

Air services on thin routes : Regional versus low-cost airlines

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Abstract

An examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes - regional jet technology and the low-cost business model - reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies).

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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))

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FAGEDA, Xavier and FLORES-FILLOL, Ricardo. Air services on thin routes : Regional versus low-cost airlines. IREA – Working Papers. 2011. Vol.  IR11/23. ISSN 2014-1254. [consulted: 10 of October of 2026]. Available at: https://hdl.handle.net/2445/58890

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