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

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hüschelrath, Kai
  • Müller, Kathrin
  • Bilotkach, Volodymyr
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Entstanden

  • 2011

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