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IR12-007_Fageda-Jimenez.pdf (589.05 KB)

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Working paper

Publication date

2012

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cc-by-nc-nd, (c) Fageda et al., 2012
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/58418

Price differences between domestic and international air markets : an empirical application to routes from Gran Canaria

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Abstract

In this paper we examine whether airline prices on national routes are higher than those charged on international routes. Drawing on a database prepared specifically for this study, we estimate a pricing equation for all routes originating from Gran Canaria, Canary Islands, Spain; differentiating between national and international routes. A key difference between these two route types is that island residents benefit from discounts on domestic flights. When controlling for variables related to airline characteristics, market structure and demand, we find that national passengers who are non-residents on the islands are paying higher prices than international passengers.

Subject

Transport aeri, Viatges aeris, Condicions econòmiques, Infraestructura (Economia), Gran Canària (Canàries)

Subject (English)

Commercial aeronautics, Air travel, Economic conditions, Infrastructure (Economics)

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Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

Citation

FAGEDA, Xavier, JIMÉNEZ GONZÁLEZ, Juan Luis and DÍAZ SANTAMARÍA, Carlos. Price differences between domestic and international air markets : an empirical application to routes from Gran Canaria. IREA – Working Papers. 2012. Vol.  IR12/07. ISSN 2014-1254. [consulted: 14 of August of 2026]. Available at: https://hdl.handle.net/2445/58418

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