We are interested in how airlines make decisions on aircraft size and service frequency in a competitive environment. We apply three game-theoretic models to analyze airlines' choices in duopoly markets: one short-haul market and one long-haul market. We study how airlines' choices in a...

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...