Passenger Leaks and the Fate of Small Community Air Service

10 Pages Posted: 5 Jun 2006

See all articles by Owen R. Phillips

Owen R. Phillips

University of Wyoming - College of Business - Department of Economics and Finance

Larry Weatherford

University of Wyoming - College of Business

Charles F. Mason

University of Wyoming - College of Business - Department of Economics

Mitch Kunce

University of Wyoming - College of Business - Department of Economics and Finance

Abstract

Using airline-booking data from Sabre, this article documents the proportion of passengers who drive and fly from a hub airport, rather than take a commuter flight. If fewer passengers leaked to a hub, community airports would have more enplanements. Price and quality factors affecting leaks are econometrically estimated for the state of Wyoming. Fare differences, distance between the local airport and hub and the proportion of regional jets making the hub connection are important determinants. Short-run elasticities are estimated to measure the sensitivity of local air travelers to these factors. Leaks increased after September 11, 2001.

Keywords: airline-booking , commuter flight, hub airport

JEL Classification: L52, L93

Suggested Citation

Phillips, Owen R. and Weatherford, Larry and Mason, Charles F. and Kunce, Mitch, Passenger Leaks and the Fate of Small Community Air Service. Economic Inquiry, Vol. 43, Issue 4, pp. 785-794, 2005, Available at SSRN: https://ssrn.com/abstract=906351

Owen R. Phillips (Contact Author)

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
Laramie, WY 82071-3985
United States
307-766-2195 (Phone)
307-766-5090 (Fax)

Larry Weatherford

University of Wyoming - College of Business

1000 E. University Avenue
Laramie, WY 82071
United States

Charles F. Mason

University of Wyoming - College of Business - Department of Economics ( email )

P.O. Box 3985
Laramie, WY 82071-3985
United States
307-766-5336 (Phone)
307-766-5090 (Fax)

Mitch Kunce

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
Laramie, WY 82071-3985
United States
307-766.5090 (Phone)

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