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  • Network concentration and airport congestion in a post de-regulation context: A case study of Brazil 2000-2010

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    Author(s)
    Oliveira, Alessandro VM
    Lohmann, Gui
    Costa, Tiago G
    Griffith University Author(s)
    Lohmann, Gui M.
    Year published
    2016
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    Abstract
    This paper empirically investigates the main drivers of airline network concentration in an air transport market subject to rapid growth. We consider the Brazilian air transport industry of the 2000s, in which network concentration rapidly increased and was followed by a period of massive flight delays and cancelations, which resulted in the “big blackout” of 2006–2007. We develop an econometric model of network concentration, accounting for demand, cost and competition variables that may affect the propensity of carriers to concentrate flights and passenger connections on a few airports of a network. The main focus of the ...
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    This paper empirically investigates the main drivers of airline network concentration in an air transport market subject to rapid growth. We consider the Brazilian air transport industry of the 2000s, in which network concentration rapidly increased and was followed by a period of massive flight delays and cancelations, which resulted in the “big blackout” of 2006–2007. We develop an econometric model of network concentration, accounting for demand, cost and competition variables that may affect the propensity of carriers to concentrate flights and passenger connections on a few airports of a network. The main focus of the paper is on the relation between networks leading to the problems of the blackout episode. We investigate the dynamic pattern of the evolution of concentration before and after the abnormal period of operations and find that concentration began to rise at least six quarters before, and persisted at a high level until two quarters after the blackout – and then plunged steeply toward the end of the decade. We believe that our analysis contributes to an improved understanding of the behavior of air transport systems subject to network concentration and congestion. With respect to methodology, we suggest and employ the use of alternative measures of network concentration to check the robustness and validity of our results.
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    Journal Title
    Journal of Transport Geography
    Volume
    35
    DOI
    https://doi.org/10.1016/j.jtrangeo.2015.01.001
    Copyright Statement
    © 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence, which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.
    Subject
    Urban and regional planning
    Urban and regional planning not elsewhere classified
    Human geography
    Publication URI
    http://hdl.handle.net/10072/101340
    Collection
    • Journal articles

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