Network Structure and Consolidation in the US Airline Industry, 1990-2015

45 Pages Posted: 20 Jul 2017

See all articles by Federico Ciliberto

Federico Ciliberto

University of Virginia - Department of Economics; Centre for Economic Policy Research (CEPR)

Emily Cook

University of Virginia - Department of Economics

Jonathan W. Williams

University of North Carolina (UNC) at Chapel Hill - Department of Economics

Date Written: July 12, 2017

Abstract

We study the effect of consolidation on airline network connectivity using three measures of centrality from graph theory: Degree, Closeness, and Betweenness. Changes in these measures from 1990 to 2015 imply: i) the average airport services a greater proportion of possible routes, ii) the average origin airport is fewer stops away from any given destination, and iii) the average hub is less often along the shortest route between two other airports. Yet, we find the trend toward greater connectivity in the national network structure is largely unaffected by consolidation, in the form of mergers and codeshare agreements, during this period.

Keywords: Network, Airlines, Consolidation, Mergers, Codeshare Agreements, Airports

JEL Classification: L13, L93

Suggested Citation

Ciliberto, Federico and Cook, Emily and Williams, Jonathan W., Network Structure and Consolidation in the US Airline Industry, 1990-2015 (July 12, 2017). Available at SSRN: https://ssrn.com/abstract=3001549 or http://dx.doi.org/10.2139/ssrn.3001549

Federico Ciliberto (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Emily Cook

University of Virginia - Department of Economics ( email )

237 Monroe Hall
P.O. Box 400182
Charlottesville, VA 22904-418
United States

Jonathan W. Williams

University of North Carolina (UNC) at Chapel Hill - Department of Economics ( email )

Chapel Hill, NC 27599
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
178
Abstract Views
633
rank
168,814
PlumX Metrics