Article ID Journal Published Year Pages File Type
10495498 Transportation Research Part E: Logistics and Transportation Review 2005 13 Pages PDF
Abstract
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.
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