The Economics of International Airline Transport

387 Pages·2014·5.64 MB·English

by  James Peoples

THE ECONOMICS OF
INTERNATIONAL AIRLINE
TRANSPORT
ADVANCES IN AIRLINE
ECONOMICS
Series Editor: James Peoples
Recent Volumes:
Volume1: CompetitionPolicyandAnti-Trust,DarinLee
Volume2: TheEconomicsofAirlineInstitutions,Operationsand
Marketing,DarinLee
Volume3: PricingBehaviorandNon-PriceCharacteristicsintheAirline
Industry,JamesPeoples
ADVANCES IN AIRLINE ECONOMICS VOLUME 4
THE ECONOMICS OF
INTERNATIONAL
AIRLINE TRANSPORT
EDITED BY
JAMES PEOPLES
University of Wisconsin-Milwaukee, WI, USA
United Kingdom (cid:1) North America (cid:1) Japan
India (cid:1) Malaysia (cid:1) China
EmeraldGroupPublishingLimited
HowardHouse,WagonLane,BingleyBD161WA,UK
Firstedition2014
Copyrightr2014EmeraldGroupPublishingLimited
Reprintsandpermissionservice
Contact:[email protected]
Nopartofthisbookmaybereproduced,storedinaretrievalsystem,transmittedin
anyformorbyanymeanselectronic,mechanical,photocopying,recordingor
otherwisewithouteitherthepriorwrittenpermissionofthepublisheroralicence
permittingrestrictedcopyingissuedintheUKbyTheCopyrightLicensingAgency
andintheUSAbyTheCopyrightClearanceCenter.Anyopinionsexpressedinthe
chaptersarethoseoftheauthors.WhilstEmeraldmakeseveryefforttoensurethe
qualityandaccuracyofitscontent,Emeraldmakesnorepresentationimpliedor
otherwise,astothechapters’suitabilityandapplicationanddisclaimsanywarranties,
expressorimplied,totheiruse.
BritishLibraryCataloguinginPublicationData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary
ISBN:978-1-78350-639-2
ISSN:2212-1609(Series)
ISOQAR certified
Management System,
awarded to Emerald
for adherence to
Environmental
standard
ISO 14001:2004.
Certificate Number 1985
ISO 14001
CONTENTS
LIST OF CONTRIBUTORS vii
EDITORIAL BOARD MEMBERS xi
CHAPTER 1 INTRODUCTION AND OVERVIEW
James Peoples 1
CHAPTER 2 AIR TRANSPORT LIBERALIZATION
AND ITS EFFECTS ON AIRLINE COMPETITION AND
TRAFFIC GROWTH (cid:1) AN OVERVIEW
Xiaowen Fu and Tae Hoon Oum 11
CHAPTER 3 GOVERNMENT REGULATION OF
INTERNATIONAL AIR TRANSPORTATION
Darren Prokop 45
CHAPTER 4 SKIES WIDE SHUT (cid:1) AN ASSESSMENT
OF INTERNATIONAL AIR TRANSPORT
LIBERALIZATION
Pierre Latrille, Antonia Carzaniga and Marta Soprana 61
CHAPTER 5 INTERNATIONAL MERGERS AND
ACQUISITIONS IN THE AIRLINE INDUSTRY
James Nolan, Pamela Ritchie and John Rowcroft 127
CHAPTER 6 AIRFARES AND COMPETITION ON
INTERNATIONAL ROUTES
John Bitzan, Alice Kones and James Peoples 151
v
vi CONTENTS
CHAPTER 7 THE CHOICE OF AIRPORT, AIRLINE,
AND DEPARTURE DATE AND TIME: ESTIMATING
THE DEMAND FOR FLIGHTS
Diego Escobari and Cristhian Mellado 177
CHAPTER 8 AIR CARGO SERVICES AND THE
EXPORT FLOWS OF DEVELOPING COUNTRIES
Henry L. Vega 199
CHAPTER 9 AN ASSESSMENT OF THE CAUSAL
RELATIONSHIP BETWEEN AIR PASSENGER
TRAFFIC AND TRADE IN ASIA-PACIFIC
Elien Van De Vijver, Ben Derudder and FrankWitlox 235
CHAPTER 10 INTERNATIONAL AND NATIONAL
POLITICAL REGULATIONS OF AVIATION’S
CLIMATE IMPACT AND COST IMPACTS ON AIR
FREIGHT
Janina D. Scheelhaase 255
CHAPTER 11 PLANNING A COMPETITIVE
AEROTROPOLIS
John D. Kasardaand Stephen J. Appold 281
CHAPTER 12 AIRPORT AND AIRLINE
SUBSTITUTION EFFECTS IN MULTI-AIRPORT
MARKETS
Dan Mahoney and Wesley W. Wilson 309
CHAPTER 13 BUYER SUBSIDIESIN TWO-SIDED
MARKETS: EVIDENCE FROM ONLINE TRAVEL
AGENTS
Volodymyr Bilotkach and Nicholas G. Rupp 339
LIST OF CONTRIBUTORS
Stephen J. Appold Research Associate, Center for Air
Commerce, Kenan-Flagler Business
School, Chapel Hill, NC, USA
Volodymyr Bilotkach Senior Lecturer in Economics, Newcastle
University, Newcastle, UK
John Bitzan Associate Professor, Department of
Management and Marketing, North
Dakota State University, Fargo, ND, USA
Antonia Carzaniga Counsellor, World Trade Organization
(WTO), Geneva, Switzerland
Ben Derudder Professor, Geography Department,Ghent
University, Ghent, Belgium
Diego Escobari Assistant Professor, Department of
Economics and Finance, The University
of Texas (cid:1) PanAmerican, Edinburg,
TX, USA
Xiaowen Fu Senior Lecturer, Business School,
University of Sydney, Sydney, Australia
John D. Kasarda Director of Center for Air Commerce ,
Center for Air Commerce, Kenan-Flagler
Business School, Chapel Hill, NC, USA
Alice Kones Research Assistant, Department of
Economics, University of Wisconsin-
Milwaukee, Milwaukee, WI, USA
Pierre Latrille Counsellor, World Trade Organization
(WTO), Switzerland, Geneva
vii
viii LISTOFCONTRIBUTORS
Dan Mahoney Graduate Teaching Fellow, Department of
Economics, University of Oregon, Eugene,
OR, USA
Cristhian Mellado Assistant Professor, Department of
Economics, Universidad Catolica de la
Santisima Concepcion, Concepcion, Chile
and Research Assistant and PHD Student,
Department of Economics and Finance,
The University of Texas (cid:1) Pan American,
Edinburg, TX, USA
James Nolan Professor, Department of Bioresource
Policy, Business and Economics,
University of Saskatchewan, Saskatoon,
SK, Canada
Tae Hoon Oum UPS FoundationChair Professor,
Sauder School of Business, University
of British Columbia, Vancouver, BC,
Canada
James Peoples Professor, Department of Economics,
University of Wisconsin-Milwaukee,
Milwaukee, WI, USA
Darren Prokop Professor of Logistics, Department of
Logistics, College of Business and Public
Policy, University of Alaska Anchorage,
Anchorage, AK, USA
Pamela Ritchie Dean, Faculty of Business and IT,
University of Ontario Institute of
Technology,Oshawa, ON, Canada
John Rowcroft Adjunct Professor, Faculty of Business and
IT, University of Ontario Institute of
Technology,Oshawa, ON, Canada
Nicholas G. Rupp Associate Professor of Economics,
Department of Economics, East Carolina
University, Greenville, NC, USA
ListofContributors ix
Janina D. Scheelhaase Head of Air Transport Economics,
German AerospaceCentre (DLR), Institute
of Air Transport and Airport Research,
Cologne, Germany
Marta Soprana Consultant, World Trade Organization
(WTO), Geneva, Switzerland
Elien VanDe Vijver PHD Student, Department of Geography,
Ghent University, Ghent, Belgium
Henry L. Vega Research Fellow, Center for
Transportation, Policy, Operations, and
Logistics, School of Public Policy, George
Mason University, Arlington, VA, USA
Wesley W. Wilson Professor of Economics, Department of
Economics, University of Oregon, Eugene,
OR, USA
Frank Witlox Professor, Geography Department,Ghent
University, Ghent, Belgium