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Competing Networks, Spatial and Industrial Concentration in the US Airline Industry

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  • Aisling Reynolds-Feighan

Abstract

Abstract The paper uses Gini decomposition analysis to evaluate changes in the spatial distribution and industry shares of total US air traffic, as well as analysing the decomposition components for individual airlines and airports for the period 1990–2002. The paper develops explicit relationships between two of the main decomposition schemes used in the income inequality literature and shows the insights that such analysis may provide for evaluation and examination of air transport networks and traffic distributions. A multi-dimensional Gini and its decomposition are derived using an adjustment method derived from the relationship between the two Gini decomposition schemes.

Suggested Citation

  • Aisling Reynolds-Feighan, 2007. "Competing Networks, Spatial and Industrial Concentration in the US Airline Industry," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(3), pages 237-257.
    • Handle: RePEc:taf:specan:v:2:y:2007:i:3:p:237-257
    DOI: 10.1080/17421770701549779
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    Citations

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    Cited by:

    1. Thomas Demuynck, 2012. "An (almost) unbiased estimator for the S-Gini index," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(1), pages 109-126, March.
    2. Reynolds-Feighan, Aisling, 2010. "Characterisation of airline networks: A North American and European comparison," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 109-120.
    3. Grubesic, Tony H. & Matisziw, Timothy C. & Zook, Matthew A., 2009. "Spatio-temporal fluctuations in the global airport hierarchies," Journal of Transport Geography, Elsevier, vol. 17(4), pages 264-275.
    4. Tom Van Ourti & Philip Clarke, 2008. "The Bias of the Gini Coefficient due to Grouping," Tinbergen Institute Discussion Papers 08-095/3, Tinbergen Institute.
    5. Soyk, Christian & Ringbeck, Jürgen & Spinler, Stefan, 2021. "Effect of long-haul low-cost carriers on North Atlantic air fares," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    6. Allroggen, Florian & Wittman, Michael D. & Malina, Robert, 2015. "How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 184-201.
    7. Cidell, Julie, 2014. "Spoke airports, intentional and unintentional ground travel, and the air travel decision-making process," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 113-123.
    8. Zou, Li & Reynolds-Feighan, Aisling & Yu, Chunyan, 2022. "Airline seasonality: An explorative analysis of major low-cost carriers in Europe and the United States," Journal of Air Transport Management, Elsevier, vol. 105(C).
    9. Papatheodorou, Andreas & Arvanitis, Pavlos, 2009. "Spatial evolution of airport traffic and air transport liberalisation: the case of Greece," Journal of Transport Geography, Elsevier, vol. 17(5), pages 402-412.
    10. Aisling J. Reynolds-Feighan, 2011. "Analysis of air freight networks in regional markets around the globe," Open Access publications 10197/2957, School of Economics, University College Dublin.
    11. Koo, T. & Halpern, N. & Papatheodorou, A. & Graham, A. & Arvanitis, P., 2016. "Air transport liberalisation and airport dependency: developing a composite index," Journal of Transport Geography, Elsevier, vol. 50(C), pages 83-93.
    12. Aisling Reynolds-Feighan, 2017. "Small community impacts of liberalization and the provision of social air services," Chapters, in: Matthias Finger & Kenneth Button (ed.), Air Transport Liberalization, chapter 12, pages 220-243, Edward Elgar Publishing.
    13. Wei, Fangwu & Grubesic, Tony H., 2016. "The pain persists: Exploring the spatiotemporal trends in air fares and itinerary pricing in the United States, 2002–2013," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 107-121.
    14. Yang, Zhongzhen & Yu, Shunan & Notteboom, Theo, 2016. "Airport location in multiple airport regions (MARs): The role of land and airside accessibility," Journal of Transport Geography, Elsevier, vol. 52(C), pages 98-110.
    15. Suau-Sanchez, Pere & Burghouwt, Guillaume, 2011. "The geography of the Spanish airport system: spatial concentration and deconcentration patterns in seat capacity distribution, 2001–2008," Journal of Transport Geography, Elsevier, vol. 19(2), pages 244-254.
    16. Oliveira, Renan P. & Oliveira, Alessandro V.M. & Lohmann, Gui & Bettini, Humberto F.A.J., 2020. "The geographic concentrations of air traffic and economic development: A spatiotemporal analysis of their association and decoupling in Brazil," Journal of Transport Geography, Elsevier, vol. 87(C).
    17. Chang, Yu-Chun & Lee, Wei-Hao & Wu, Yi-Ting & Hsiao, Chien-You, 2022. "Airport transfer dependency on neighbour hubs – The case of Taoyuan Airport's aviation network," Transport Policy, Elsevier, vol. 124(C), pages 212-220.
    18. Diana, Tony, 2010. "Predicting Arrival Delays: An Application of Spatial Analysis," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207260, Transportation Research Forum.
    19. Aisling J. Reynolds-Feighan, 2018. "Air Traffic Flow Analysis in Major Global Regions," Open Access publications 10197/11229, School of Economics, University College Dublin.

    More about this item

    Keywords

    Airlines; Gini decomposition; spatial concentration; hub-and-spoke networks; I32; L11; l93;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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