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The Southwest effect: A time-series analysis on passengers carried by selected routes and a market share comparison

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  • Pitfield, D.E.

Abstract

The Southwest effect has been known for some time in terms of the US airline's impact on pricing, competition and traffic volumes. But recent estimates of the impact on traffic and market shares do not exist. This desideratum can be addressed by applying autoregressive integrated moving average (ARIMA) models with intervention analysis to key domestic air routes in the USA, where Southwest has started service. The paper first deals with the choice of routes to be examined and, after a preliminary statistical description of these, applies ARIMA models. These results are examined for both their statistical qualities and their reasonableness and the impacts are compared to those previously determined in the same way for Ryanair's routes from London.

Suggested Citation

  • Pitfield, D.E., 2008. "The Southwest effect: A time-series analysis on passengers carried by selected routes and a market share comparison," Journal of Air Transport Management, Elsevier, vol. 14(3), pages 113-122.
    • Handle: RePEc:eee:jaitra:v:14:y:2008:i:3:p:113-122
    DOI: 10.1016/j.jairtraman.2008.02.006
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    References listed on IDEAS

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    1. McMullen, B. Starr & Du, Yan, 2007. "The Economic Impact of the ATA/Southwest Airlines Code Share Alliance," 48th Annual Transportation Research Forum, Boston, Massachusetts, March 15-17, 2007 207914, Transportation Research Forum.
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    6. D. E. Pitfield, 2007. "Ryanair's Impact on Airline Market Share from the London Area Airports: A Time Series Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 41(1), pages 75-92, January.
    7. Pitfield, D.E., 2007. "The impact on traffic, market shares and concentration of airline alliances on selected European—US routes," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 192-202.
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    Cited by:

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