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The Puzzle of Aircraft Size and Traffic Growth

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  • Yimin Zhang

Abstract

This paper studies airlines' choices of flight frequency and aircraft size when passenger demand grows over time. The analysis shows that, when there are economies of operating larger aircraft, airlines would increase the number of flights, but not necessarily increase aircraft size to accommodate traffic growth. On the other hand, when there are no economies of operating larger aircraft, airlines would prefer operating larger aircraft to increasing the number of flights. The effect is stronger if the economies of aircraft size are more significant. These results hold whether airport charges are weight-based or flight-based, and are set exogenously or endogenously. © 2013 LSE and the University of Bath

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  • Yimin Zhang, 2014. "The Puzzle of Aircraft Size and Traffic Growth," Journal of Transport Economics and Policy, University of Bath, vol. 48(3), pages 465-482, September.
    • Handle: RePEc:tpe:jtecpo:v:48:y:2014:i:3:p:465-482
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    Cited by:

    1. Lin, Ming Hsin, 2021. "Airport pricing and capacity: Schedule versus congestion delays," Research in Transportation Economics, Elsevier, vol. 90(C).
    2. Lin, Ming Hsin & Zhang, Yimin, 2017. "Hub-airport congestion pricing and capacity investment," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 89-106.
    3. Zhang, Yahua & Wang, Kun & Fu, Xiaowen, 2017. "Air transport services in regional Australia: Demand pattern, frequency choice and airport entry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 472-489.
    4. Zakharenko, Roman & Luttmann, Alexander, 2023. "Downsizing the jet: A forecast of economic effects of increased automation in aviation," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 25-47.

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