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Air and high-speed rail transport integration on profits and welfare: Effects of air-rail connecting time

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  • Xia, Wenyi
  • Zhang, Anming

Abstract

Air-rail integration has become a popular idea to relieve airport congestion and environmental impact of transport industry, especially amid the fast expansion of high-speed rail network around the world. This study examines the circumstances under which air-rail integration can be better justified, by focusing on the effects of reducing air-rail connecting time on transport operators' profits, consumer surplus, and social welfare. We show that while consumers always benefit from less air-rail connecting time (an integrated hub with seamless transfer between air and rail services is always preferred by passengers), operators of the two modes, air transport and high-speed rail, won't have an incentive to integrate unless the cost of integration is sufficiently low. Nonetheless, reducing air-rail connecting time enhances total surplus when the hub airport suffers from a certain degree of capacity constraint and the cost of air-rail integration is not too high.

Suggested Citation

  • Xia, Wenyi & Zhang, Anming, 2017. "Air and high-speed rail transport integration on profits and welfare: Effects of air-rail connecting time," Journal of Air Transport Management, Elsevier, vol. 65(C), pages 181-190.
    • Handle: RePEc:eee:jaitra:v:65:y:2017:i:c:p:181-190
    DOI: 10.1016/j.jairtraman.2017.06.008
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