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Flight cancellation as a reaction to the tarmac delay rule: An unintended consequence of enhanced passenger protection

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  • Fukui, Hideki
  • Nagata, Koki

Abstract

We examine the effects of the US DOT׳s tarmac delay rule (effective April 29, 2010) on flight cancellations and gate departure delays, using carrier-level panel data for the period between May 2008 and April 2012. Our results suggest the DOT׳s investigations of tarmac delay incidents triggered risk-averse behavior by investigated carriers, which increased flight cancellations and gate departure delays to avoid violating the rule. Carriers׳ preemptive flight cancellations are estimated to have affected about 308,900 passengers in 2011 alone. The results also suggest that these side effects persist for at least two years after the investigations, having larger adverse effects on passengers booked on the highest and lowest frequency routes. The costs and benefits of the rule need reevaluation.

Suggested Citation

  • Fukui, Hideki & Nagata, Koki, 2014. "Flight cancellation as a reaction to the tarmac delay rule: An unintended consequence of enhanced passenger protection," Economics of Transportation, Elsevier, vol. 3(1), pages 29-44.
    • Handle: RePEc:eee:ecotra:v:3:y:2014:i:1:p:29-44
    DOI: 10.1016/j.ecotra.2014.02.004
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    References listed on IDEAS

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    Cited by:

    1. Pedro Jose Gudiel Pineda & Chao-Che Hsu & James J. H. Liou & Huai-Wei Lo, 2018. "A Hybrid Model for Aircraft Type Determination Following Flight Cancellation," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1147-1172, July.
    2. Alderighi, Marco & Gaggero, Alberto A., 2018. "Flight cancellations and airline alliances: Empirical evidence from Europe," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 90-101.
    3. Gnutzmann, Hinnerk & Śpiewanowski, Piotr, 2023. "Can consumer rights improve on-time performance? Evidence from European Air Passenger Rights," Transport Policy, Elsevier, vol. 136(C), pages 155-168.

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    More about this item

    Keywords

    Tarmac delay rule; Flight cancellations; Departure delays; Risk-averse behavior;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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