The demand for air transport is largely determined by the spending capacity of customers. This paper aims to offer more insight into the determinants of price elasticities in the aviation sector. It seeks to identify both common and contrasting factors that influence the price elasticities, on...

This paper reviews the problem of environmental externalities in air transportation. Several types of externalities in aviation are discussed and their empirical relevance is assessed. Next, it is argued that economic evaluation of environmental effects is essential in order to arrive at an...

The paper identifies conditions under which asymmetric equilibria may exist when carriers compete in designing their network configurations in a game-theoretical framework. Two carriers are assumed here, which are allowed to play three different strategies: point-to-point (PP), hub-and-spoke...

One of the main outcomes of open skies policies is the importance of service frequency in the competition between airlines. To keep load factors high while offering high frequency service, airlines tend to reduce the size of the aircraft used. On short-haul routes this phenomenon is even more...

Markets in civil aviation are characterized by large differences in the level of competition, both between time periods as between regions. To measure competition, several indicators are available, such as the number of competitors, the C4-index and the Herfindahl index. We use these measures in...

Low frequencies of aircraft may have substantial negative effects on scheduling costs and waiting costs at hub airports. Appropriate timetabling of carriers will reduce these costs. In this paper we propose a measure for the quality of the co-ordination of timetables by carriers in hub airports....

Placing a monetary value on aircraft noise is necessary in order to assess the social cost inflicted by aviation. This need has given rise to a considerable amount of hedonic price (HP) studies on the relation between property values and aircraft noise, both published and unpublished. The...

Low-cost carriers like easyJet, Buzz and Ryanair use catching slogans highlighting their sometimes very low fares to attract passengers. This paper analyses pricing behaviour in the London–Paris market where low-cost carriers and conventional carriers are active. The central question is...