Airport congestion delays and airline networks. (February 2019)

• Record Type: Journal Article
• Authors: Wang, Chunan; Wang, Xiaoyu
• Is Part Of: Transportation research. Volume 122(2019)
• Page Start: 328
• Page End: 349
• Publication Date: 2019-02
• Subjects: Congestion delay -- Airline network -- Mixed network -- Aircraft size -- Flight frequency; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2018.12.008
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: The role of airport congestion delays in monopoly airline network choice is studied. The hub-and-spoke (HS), point-to-point (PP) and mixed networks (MX) are considered. The total optimal flight frequency may be higher under HS than PP. The optimal aircraft size is smaller under HS than PP. PP may be optimal when the extra travel time disutility of one-stop services is low. Abstract: This paper investigates the role of airport congestion delays in the network choice of a monopoly airline. By comparing a hub-and-spoke network (HS), a point-to-point network (PP) and a mixed network (MX), we find the following. First, the optimal total flight frequency may be higher under HS than PP. Moreover, because of the inclusion of congestion delays, the optimal aircraft size is smaller under HS than PP, and the airline may choose PP even when the extra travel time disutility of one-stop services is relatively low. Finally, welfare analysis shows the airline's inefficient bias towards PP.