Competition and Service Quality in the U.S. Airline Industry

Competition and Service Quality in the U.S. Airline Industry The U.S. government, media, and flying public have expressedgreat concern in recent years over both airline market concentration and flightdelays. This study explores potential connections between the two by examining whetherthe lack of competition on a particular route results in worse on-time performance.Analysis of data from the U.S. Bureau of Transportation Statistics in 2000 indicatesthat both the prevalence and duration of flight delays are significantly greater onroutes where only one airline provides direct service. Additional competition iscorrelated with better on-time performance. Weather, congestion, and schedulingdecisions also contribute significantly to explaining flight delays. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Competition and Service Quality in the U.S. Airline Industry

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2003 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1025565122721
Publisher site
See Article on Publisher Site

Abstract

The U.S. government, media, and flying public have expressedgreat concern in recent years over both airline market concentration and flightdelays. This study explores potential connections between the two by examining whetherthe lack of competition on a particular route results in worse on-time performance.Analysis of data from the U.S. Bureau of Transportation Statistics in 2000 indicatesthat both the prevalence and duration of flight delays are significantly greater onroutes where only one airline provides direct service. Additional competition iscorrelated with better on-time performance. Weather, congestion, and schedulingdecisions also contribute significantly to explaining flight delays.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 4, 2004

References

  • The Evolution of Airline Competition
    Borenstein, S.
  • Publication of Information and Market Response: The Case of Airline on Time Performance Reports
    Foreman, S. E.; Shea, D. G.
  • Market Structure, Durability, and Quality: A Selective Survey
    Schmalensee, R.

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