The Effect of Adopting the Next Generation Air Transportation System on Air Travel Performance
55 Pages Posted: 2 Jun 2022 Last revised: 27 Sep 2022
Date Written: September 26, 2022
We examine a large-scale air transportation infrastructure program called Next Generation Air Transportation System (NextGen) using an event study approach. We find sizable time savings in air travel time and delays from implementing NextGen. The time savings are more substantial for flights that experience unexpected shocks such as poor weather and prior delays. In contrast, while NextGen seemed to close the performance gap between the hub and non-hub carriers pre-distorted by market power, the effect was short-lived and quickly reversed. We also find social benefits from carbon emission reductions, but the gains are relatively small compared to the private gains.
Keywords: Air transportation, transportation infrastructure, air travel time and delay, private benefits of infrastructure improvement
JEL Classification: L93, R4, O18, Q53
Suggested Citation: Suggested Citation