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The business passenger niche: Comparing legacy carriers and southwest during a national recession

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  • Neal, Zachary P.
  • Kassens-Noor, Eva

Abstract

We examine how legacy and low-cost air carriers’ roles in serving business passengers in the US changed during the global economic recession from 2007. Quarterly data is examined to test the impact of a recession on the air travel behavior. We find that since 2007 business passengers represent a declining proportion of legacy carriers’ passenger volume, while they represent an increasing proportion of Southwest’s passengers. This trend suggests that Southwest’s market niche has shifted, and that the airline now plays a role similar to that of legacy carriers.

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  • Neal, Zachary P. & Kassens-Noor, Eva, 2011. "The business passenger niche: Comparing legacy carriers and southwest during a national recession," Journal of Air Transport Management, Elsevier, vol. 17(4), pages 231-232.
    • Handle: RePEc:eee:jaitra:v:17:y:2011:i:4:p:231-232
    DOI: 10.1016/j.jairtraman.2010.09.001
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    References listed on IDEAS

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    1. Huse, Cristian & Evangelho, Fabio, 2007. "Investigating business traveller heterogeneity: Low-cost vs full-service airline users?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 259-268, May.
    2. Zachary Neal, 2010. "Refining the Air Traffic Approach to City Networks," Urban Studies, Urban Studies Journal Limited, vol. 47(10), pages 2195-2215, September.
    3. Mason, Keith J., 2001. "Marketing low-cost airline services to business travellers," Journal of Air Transport Management, Elsevier, vol. 7(2), pages 103-109.
    4. Dresner, Martin, 2006. "Leisure versus business passengers: Similarities, differences, and implications," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 28-32.
    5. Goetz, Andrew R. & Vowles, Timothy M., 2009. "The good, the bad, and the ugly: 30 years of US airline deregulation," Journal of Transport Geography, Elsevier, vol. 17(4), pages 251-263.
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    Cited by:

    1. Wu, Cheng-Lung & So, T.H. Hanson, 2018. "On the flight choice behaviour of business-purpose passengers in the Australian domestic air market," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 56-67.
    2. Zuidberg, Joost, 2019. "Network geographies and financial performances in low-cost carrier versus network carrier competition: The case of Norwegian versus SAS," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    3. Joshan, Saeid & Maertens, Sven, 2020. "Low cost carriers in the Middle East and North Africa (MENA) region: Emergence and barriers to development," Journal of Transport Geography, Elsevier, vol. 87(C).
    4. Unger, Orit & Uriely, Natan & Fuchs, Galia, 2021. "On-site animosity and national identity: Business travelers on stage," Annals of Tourism Research, Elsevier, vol. 88(C).
    5. Ambrose, Scott C. & Waguespack, Blaise P. & Rutherford, Brian N., 2021. "The negative effects of travel friction among road warrior salespeople," Journal of Air Transport Management, Elsevier, vol. 95(C).
    6. Cho, Woohyun & Min, Dong-Jun, 2018. "Longitudinal examination of passenger characteristics among airline types in the US," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 11-19.
    7. Martínez-Garcia, Esther & Ferrer-Rosell, Berta & Coenders, GermÃ, 2012. "Profile of business and leisure travelers on low cost carriers in Europe," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 12-14.
    8. Ferrer-Rosell, Berta & Coenders, GermÃ, 2017. "Airline type and tourist expenditure: Are full service and low cost carriers converging or diverging?," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 119-125.
    9. Zachary Neal, 2014. "AIRNET: A Programme for Generating Intercity Networks," Urban Studies, Urban Studies Journal Limited, vol. 51(1), pages 136-152, January.
    10. Gramani, Maria Cristina N., 2011. "Impact of regional airline’s efficiency: a country-specific study over successive time periods," Insper Working Papers wpe_259, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    11. Unger, Orit & Uriely, Natan & Fuchs, Galia, 2016. "The business travel experience," Annals of Tourism Research, Elsevier, vol. 61(C), pages 142-156.
    12. Sugishita, Kashin & Mizutani, Hiroki & Hanaoka, Shinya, 2024. "Disruption and recovery of the US domestic airline networks during the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 114(C).

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