Impact of aircraft size and seat availability on airlines' demand and market share in duopoly markets
We build a nested logit model to study the roles of aircraft size, together with service frequency, seat availability and fare, in airlines' market share and total demand in non-stop duopoly markets. We find that airlines can obtain higher returns in market share from increasing service frequency than from increasing aircraft size, and our study confirms an S-curve effect of service frequency on airlines' market share. We find that the available capacity per flight--net of capacity absorbed by connecting passengers--affects market share in the same manner whether it is derived from a larger proportion of a smaller aircraft or smaller proportion of a larger one.
Year of publication: |
2005
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Authors: | Wei, Wenbin ; Hansen, Mark |
Published in: |
Transportation Research Part E: Logistics and Transportation Review. - Elsevier, ISSN 1366-5545. - Vol. 41.2005, 4, p. 315-327
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Publisher: |
Elsevier |
Keywords: | Aircraft size Seat availability Airline demand Market share Duopoly market |
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