Route expansion in the European air transport market

Abstract

The factors accounting for the significant increase in new routes in the European air transport market in the period 2002- 13 are examined. Data for 259 airports with more 250,000 annual passengers are used. The analysis reveals that low-cost airlines extended the benefits of air connectivity to regions with relatively low rates of gross domestic product per capita, increasing the geographical coverage of small or medium-sized airports. New routes are more likely when a tourist destination is an endpoint and are less likely in competitive environments. Finally, different opening patterns by low cost and network airlines are found.