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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.)

Estimating fuel-efficiency while accounting for dynamic fleet management: Testing the effects of fuel price signals and fleet rollover

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Author(s):
Oliveira, Alessandro V. M. [1] ; Narcizo, Rodolfo R. [1] ; Caliari, Thiago [1] ; Morales, Mauricio A. V. [1] ; Prado, Rafael [1]
Total Authors: 5
Affiliation:
[1] Aeronaut Inst Technol, Ctr Airline Econ, Sao Jose Dos Campos - Brazil
Total Affiliations: 1
Document type: Journal article
Source: TRANSPORTATION RESEARCH PART D-TRANSPORT AND ENVIRONMENT; v. 95, JUN 2021.
Web of Science Citations: 0
Abstract

Fuel efficiency has become one of the most important policy goals for airline operations management. This study develops an econometric model to estimate airlines' fuel burn determinants, aiming to test the hypothesis of fuel price signals on carriers' incentives for energy-saving efforts. We propose a novel high-dimensional sparse IV-LASSO method to account for airline dynamic fleet management. Our model also provides controls for thousands of nuisance factors related to route direction, airway congestion, and aircraft model specificities, allowing for flexible timevarying unobserved effects of flight stages. The results show that energy intensity reduction induced by price increases was observed 3-4 years earlier, possibly due to fleet rollover and fleet modernization. Furthermore, although new competition may create incentives for improved fuel management to control costs, our results suggest that the overall effect of market deconcentration is unclear and may produce the unintended consequence of worse performance, as measured in some key fuel efficiency dimensions. (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