The business passenger niche: Comparing legacy carriers and southwest during a national recession |
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| Authors: | Zachary P Neal Eva Kassens-Noor |
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| Institution: | 1. Department of Sociology, Michigan State University, 316 Berkey Hall, East Lansing, MI 48823, USA;2. School of Planning, Design and Construction, Michigan State University, 201E Human Ecology, East Lansing, MI 48823, USA |
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| Abstract: | We examine how legacy and low-cost air carriers’ roles in serving business passengers in the US changed during the global economic recession from 2007. Quarterly data is examined to test the impact of a recession on the air travel behavior. We find that since 2007 business passengers represent a declining proportion of legacy carriers’ passenger volume, while they represent an increasing proportion of Southwest’s passengers. This trend suggests that Southwest’s market niche has shifted, and that the airline now plays a role similar to that of legacy carriers. |
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