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An empirical analysis of airport capacity expansion

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  • Dray, Lynnette

Abstract

Theoretical analyses of the impact of airport capacity expansion must model or make assumptions about the effect of capacity on demand, airline competition, aircraft types, fares and other characteristics of a given airport. In this paper, we use empirical data on historical schedules, fares, delays and demand for the busiest 150 airports in 2015 to examine the typical impact of historical capacity expansions. We find significant diversity in outcomes, with over half the expanded airports either using less than their pre-expansion capacity or remaining constrained even at post-expansion capacity by 2016. Many of the expected impacts, such as reductions in typical aircraft size, either do not materialise or are dominated by other effects (for example, recessions; airlines beginning or ending operations at an airport; changes in regulation). Behaviour on expansion is affected by slot control regulations and whether the airport is initially capacity-constrained. In particular, slot-controlled airports typically add new destinations and carriers on expansion rather than making significant changes to existing schedules.

Suggested Citation

  • Dray, Lynnette, 2020. "An empirical analysis of airport capacity expansion," Journal of Air Transport Management, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:jaitra:v:87:y:2020:i:c:s0969699719304314
    DOI: 10.1016/j.jairtraman.2020.101850
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    Cited by:

    1. Pierre Picard & Alessandro Tampieri & Xi Wan, 2023. "Deregulation and Efficiency in Slot-Constrained Airports," DEM Discussion Paper Series 23-14, Department of Economics at the University of Luxembourg.
    2. Gong, Zhenwei & Zhang, Fangni & Liu, Wei & Graham, Daniel J., 2023. "On the effects of airport capacity expansion under responsive airlines and elastic passenger demand," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 48-76.
    3. Sameeraű Galagedera & Varuna Adikariwattage & H. R. Pasindu, 2021. "Evaluation of Rapid Exit Locations Based on Veer-Off Risk for Landing Aircraft," Sustainability, MDPI, vol. 13(9), pages 1-21, May.
    4. Burns, Porter & Bowen, John, 2024. "Global network structure and emissions implications of long-thin airline routes," Journal of Air Transport Management, Elsevier, vol. 115(C).

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