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To Pad or Not to Pad? A Note on the Schedule Padding Behavior of Airlines

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  • Jules Yimga

Abstract

This note provides a rationale for the current trend in airline schedule padding by studying the strategic behaviour of carriers that may decide whether or not to pad their flight beyond the optimal time necessary for flight completion. Using a structural demand and supply model for air travel, our results indicate that the positive price effects of schedule padding we observe are primarily driven by cost increases (inefficiency effect) rather than increases in markup (marketing effect).

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  • Jules Yimga, 2022. "To Pad or Not to Pad? A Note on the Schedule Padding Behavior of Airlines," Applied Economics Letters, Taylor & Francis Journals, vol. 29(4), pages 325-332, February.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:4:p:325-332
    DOI: 10.1080/13504851.2020.1866155
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