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http://hdl.handle.net/10419/48875
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| Title: | | The construction of a low cost airline network  |
| Authors: | | Hüschelrath, Kai Müller, Kathrin Bilotkach, Volodymyr |
| Issue Date: | | 2011 |
| Series/Report no.: | | ZEW Discussion Papers 11-052 |
| Abstract: | | 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. |
| Subjects: | | Airline industry network entry low cost carrier |
| JEL: | | L11 L23 L93 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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