Arbeitspapier
The construction of a low cost airline network
The paper investigates the construction of a low cost airline network by analyzing JetBlue Airways' entry decisions into nonstop domestic U.S. airport-pair markets between 2000 and 2009. Adopting duration models with time-varying covariates, we find that JetBlue consistently avoided concentrated airports and targeted concentrated routes; network economies also affected entry positively. For non-stop entry into a route that has not been served on a non-stop basis before, our analysis reveals that the carrier focused on thicker routes and secondary airports, thereby avoiding direct confrontation with network carriers. Non-stop entry into existing non-stop markets, however, shows that JetBlue concentrated on longer-haul markets and avoided routes already operated by either other low cost carriers or network carriers under bankruptcy protection.
- Sprache
-
Englisch
- Erschienen in
-
Series: ZEW Discussion Papers ; No. 11-052
- Klassifikation
-
Wirtschaft
Production, Pricing, and Market Structure; Size Distribution of Firms
Organization of Production
Air Transportation
- Thema
-
Airline industry
network
entry
low cost carrier
Luftverkehrsgesellschaft
Niedrigpreisstrategie
Markteintritt
Network Externalities
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hüschelrath, Kai
Müller, Kathrin
Bilotkach, Volodymyr
- Ereignis
-
Veröffentlichung
- (wer)
-
Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (wo)
-
Mannheim
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Hüschelrath, Kai
- Müller, Kathrin
- Bilotkach, Volodymyr
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Entstanden
- 2011