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(Reference retrieved automatically from Web of Science through information on FAPESP grant and its corresponding number as mentioned in the publication by the authors.)

Airport slots and the internalization of congestion by airlines: An empirical model of integrated flight disruption management in Brazil

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Author(s):
Miranda, Victor A. P. [1] ; Oliveira, Alessandro V. M. [1]
Total Authors: 2
Affiliation:
[1] Aeronaut Inst Technol, Ctr Airline Econ, Sao Jose Dos Campos - Brazil
Total Affiliations: 1
Document type: Journal article
Source: TRANSPORTATION RESEARCH PART A-POLICY AND PRACTICE; v. 116, p. 201-219, OCT 2018.
Web of Science Citations: 3
Abstract

This paper examines the relationship between the control of airport slots by-major airlines and their incentives to engage in service quality. We investigate a set of airline strategies regarding possible practices of slot hoarding and slot concentration through mergers aiming at erecting airport barriers to entry. We develop an econometric model of flight disruptions by allowing an integrated management of flight delays, cancellations, aircraft size, price and passengers per flight. We consider the case of the domestic airline industry in Brazil. We find evidence of the internalization of congestion externalities by dominant carriers. We also have some evidence of schedule padding, a strategic trade-off between delays and cancelations, and slot hoarding following a merger. Our results suggest that carriers intensify the internalization of congestion externalities when slot flight concentration increases. (AU)

FAPESP's process: 13/14914-4 - Empirical assessment of competitive impacts of regulatory rules of airport slots redistribution
Grantee:Alessandro Vinícius Marques de Oliveira
Support Opportunities: Regular Research Grants
FAPESP's process: 15/19444-1 - Airline emission charges: an econometric model to investigate their potential effects on the Brazilian air transport industry
Grantee:Alessandro Vinícius Marques de Oliveira
Support Opportunities: Regular Research Grants