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Title:
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Air services on thin routes: Regional versus low-cost airlines
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Author:
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Fageda, Xavier; Flores-Fillol, Ricardo
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Other authors:
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Universitat Rovira i Virgili. Departament d'Economia; Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública |
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Abstract:
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An examination of the impact in the US and EU markets of two major innovations
in the provision of air services on thin routes - regional jet technology and the low-cost
business model - reveals significant differences. In the US, regional airlines monopolize a
high proportion of thin routes, whereas low-cost carriers are dominant on these routes in
Europe. Our results have different implications for business and leisure travelers, given
that regional services provide a higher frequency of flights (at the expense of higher fares),
while low-cost services offer lower fares (at the expense of lower flight frequencies).
Keywords: air transportation; regional jet technology; low-cost business model; thin
markets.
JEL Classification Numbers: L13; L2; L93. |
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Publication date:
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2011 |
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Subject (UDC):
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338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus |
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Subject(s):
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Línies aèries
Aviació comercial |
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Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/3.0/es/ |
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Pages:
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39 p. |
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Document type:
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Working Paper |
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Published by:
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Universitat Rovira i Virgili. Departament d'Economia
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Collection:
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Documents de treball del Departament d'Economia;2011-27
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