A three-stage least squares approach to the analysis of airline strategies for aircraft size and airline frequency on the north Atlantic: an airline case study

• Published in: Transportation planning and technology Vol. 35; no. 2; pp. 191 - 200
• Main Authors: Pitfield, D.E., Caves, R.E., Quddus, M.A.
• Format: Journal Article
• Language: English
• Published: Abingdon Taylor & Francis Group 01.03.2012; Taylor & Francis; Taylor & Francis Ltd
• Subjects: Air transportation and traffic; Aircraft; Aircraft industry; aircraft size; airline frequency; Applied sciences; Commercial aircraft; Commercial planes; Competition; Demand; Economics; Exact sciences and technology; Ground, air and sea transportation, marine construction; slot constraints; Technological change; technology; Terrorism; three-stage least squares; Traffic flow; United Kingdom; United States; North America; Europe; America; North Atlantic region; Competition; three-stage least squares; Data analysis; slot constraints; Size; Transport demand; technology; Passenger transportation; Least squares method; Trend analysis; Frequency; Strategy; Air transportation; aircraft size; airline frequency; Aircraft
• ISSN: 0308-1060; 1029-0354
• DOI: 10.1080/03081060.2011.651882

In response to increasing demand, airlines may increase capacity by increasing the frequency of flights or they may choose to increase aircraft size. This may yield operating cost economies. If the airports they operate from are capacity constrained, they will be limited in the extent that they can change frequency which will limit their ability to compete with the number of frequencies offered. This article focuses on this trade-off and pays particular attention to the practices of a specific airline. Conclusions are offered on the impact of inter alia competition, changes in aircraft technology, 9/11 and the impact of slot constraints. It appears that changes in size are more important than frequency, which is consistent with the presence of slot constraints and there is a significant impact of competition. As the concentration of carriers increases, so aircraft size falls. 9/11 also has a significant impact on traffic whereas the introduction of the Boeing 777, as an illustration of a change in technology, does not.