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The impact of low-cost carriers on airport choice in the US: A case study of the Washington–Baltimore region

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  • Cho, Woohyun
  • Windle, Robert J.
  • Dresner, Martin E.

Abstract

Previous research has shown that low-cost carriers (LCCs) may stimulate traffic at an airport by offering low fares. Using passenger survey data from the Washington–Baltimore region’s three airports, we find that the benefits of LCCs to airports extend beyond the traffic generated directly by the LCCs through their low fares. In addition, we find that the mere presence of an LCC at an airport can attract passengers, even to competing carriers. These “halo effects” from LCC presence increase the significance to airport managers of attracting LCCs in order to generate passenger demand.

Suggested Citation

  • Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2015. "The impact of low-cost carriers on airport choice in the US: A case study of the Washington–Baltimore region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 141-157.
    • Handle: RePEc:eee:transe:v:81:y:2015:i:c:p:141-157
    DOI: 10.1016/j.tre.2015.06.004
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    3. Bettini, Humberto F.A.J. & Silveira, José Maria F.J. & Oliveira, Alessandro V.M., 2018. "Estimating strategic responses to the march of a low cost carrier to primary airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 190-204.
    4. Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2017. "The impact of operational exposure and value-of-time on customer choice: Evidence from the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 455-471.
    5. Soyk, Christian & Ringbeck, Jürgen & Spinler, Stefan, 2017. "Long-haul low cost airlines: Characteristics of the business model and sustainability of its cost advantages," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 215-234.
    6. Bezerra, George C.L. & Gomes, Carlos F., 2020. "Antecedents and consequences of passenger satisfaction with the airport," Journal of Air Transport Management, Elsevier, vol. 83(C).
    7. Teixeira, Filipe Marques & Derudder, Ben, 2021. "Spatio-temporal dynamics in airport catchment areas: The case of the New York Multi Airport Region," Journal of Transport Geography, Elsevier, vol. 90(C).
    8. Cho, Woohyun & Dresner, Martin E., 2018. "The impact of a baggage fee waiver on airline choice: Evidence from the Washington-Baltimore region," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 4-17.
    9. Xiaowei Tang & Siyu Ren & Xinyao Ma & Kurt Fuellhart, 2022. "Borrowing Power from Potential Entrants and High-Speed Rail: Entry Pattern of China’s Low-Cost Carrier," Sustainability, MDPI, vol. 14(10), pages 1-16, May.
    10. Julie Cidell, 2017. "Aero-automobility: getting there by ground and by air," Mobilities, Taylor & Francis Journals, vol. 12(5), pages 692-705, September.
    11. 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.
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