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High-speed rail and air transport integration in hub-and-spoke networks. The role of airports

Author

Listed:
  • Alessandro Avenali

    (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy)

  • Tiziana D'Alfonso

    (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy)

  • Alberto Nastasi

    (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy)

  • Pierfrancesco Reverberi

    (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy)

Abstract

Air transport and HSR are not simple competitors. Indeed, air and HSR services can be complements on long-haul routes served by connecting flights through a hub airport. This complementarity creates room for cooperation between airlines and HSR operators, particularly relating to international connecting passengers. Airport managers are also interested in such agreements since they affect, among others, air traffic volumes and the demand for slots on the part of the airlines. In this framework, we develop a theoretical model to study transport operators’ incentives to cooperate, and the strategic role of airports in facilitating or dampening airline-HSR cooperation via the airport per passenger fee. In our model, transport operators cooperate to offer a bundle of domestic HSR and international air services via a multimodal hub airport. We show that the scope for cooperation depends on two main factors, that is, the related sunk costs and mode substitution between air and HSR services.

Suggested Citation

  • Alessandro Avenali & Tiziana D'Alfonso & Alberto Nastasi & Pierfrancesco Reverberi, 2019. "High-speed rail and air transport integration in hub-and-spoke networks. The role of airports," DIAG Technical Reports 2019-09, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    • Handle: RePEc:aeg:report:2019-09
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    References listed on IDEAS

    as
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    Keywords

    Airline ; high speed rail ; cooperation ; competition ; airport per passenger fee ; sunk costs;
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