The influence of highway on local economy: Evidence from China's Yangtze River Delta region

Highway network has been constructed on a massive scale in recent decades, potentially reshaping the spatial economic pattern in China. This paper aims to investigate the influence of highway on local economic growth by exploiting county-level data of China's Yangtze River Delta region from 1993 to 2013. We employ a difference-in-differences (DID) model and control several determinants of highway location to lessen the endogeneity bias brought by non-random selection. Considering the possible impact of endogeneity, spatial dependence and unobservable variables on estimation, we conduct propensity score matching, instrumental variable estimates, spatial DID method and placebo tests to ensure the robustness of results. Our analysis shows that: (1) The opening of highway significantly stimulates the county economy, with an increasing trend on the year by year basis. (2) Highway has heterogeneous effects in terms of different locations, provinces and industries. Counties closer to the central city, in Jiangsu province or with bigger service sector, benefit more from highway operation. (3) Highway can generate an increase in market potential and then in local economic growth. In this process, highway mainly promotes the economy through the way of attracting investment and facilitating consumption. The mechanism through labor is not significant.     

The development of air transportation in Nigeria

This paper examines the development of the Nigerian civil aviation industry since its inception in the 1920s, but particularly since 1980, examining the institutional framework, partial deregulation, infrastructural provision and passenger traffic. The current crisis in Nigeria's civil aviation industry, following the decline and near collapse of Nigeria Airways, is blamed on the absence of a coherent air transport policy, excessive bureaucracy, bad management and a failure to adhere to business principles. Full deregulation might be a solution.     

Airport ownership and financial performance: Evidence from Italy

In the past few decades many countries have increased the presence of various forms of private sector involvement in airport ownership and management. This paper focuses on the financial performance of Italian airport companies. We present empirical evidence separately for two groups where public or private management majority prevails. The main findings indicate that companies with a private majority outperform the others in terms of financial indicators that are related to operating income.     

The political economy of post-transition transportation policy in Hungary

This paper reviews transportation system trends in Hungary since the transition in 1989. It documents the continuation of rapid increases in private motor vehicle ownership and use despite a major economic downturn. Sharp increases in new highway investments are contrasted with a growing backlog of unmet maintenance and rehabilitation needs in the road, rail and public transit sectors. It then reviews recent political struggles over these policies, and the effectiveness of these policies in promoting employment, regional development, and a sustainable environment. It suggests that the dynamics of the post-industrial economy may have reduced the importance of highway sector investments relative to investments into human capital.     

Evolution of the international air transportation country network from 2002 to 2013

In this research, we analyze the evolution of the international air transportation country network from 2002 to 2013 with two perspectives: The network’s physical topology and the functional network with traffic information. Our analysis shows that the network is scale-free and has the small-world property. The evolution of triadic properties suggests that the network gears towards symmetric, transitive closure. We find that United States, Great Britain, and France are critical from both perspectives; Surprisingly, South Africa is particularly critical from topological point of view. Furthermore, topological and functional criticality are highly correlated to the GDP of a country.     

Impact of operational performance on air carrier cost structure: Evidence from US airlines

The impact of operational performance on airline cost structure is empirically investigated using an aggregate, statistical cost estimation approach. Two distinct sets of operational performance metrics are developed and incorporated into the airline cost models as arguments. Results from estimating a variety of airline cost models reveal that both delay and schedule buffer are important cost drivers. We also find that flight activity outside schedule windows increases cost, whereas flight inactivity within schedule windows does not. Using the estimated cost models, we predict the cost savings to airlines of “perfect” operational performance, obtaining an estimate in the range of $7.1–13.5 billion for 2007.     

The impact of airport capacity constraints on future growth in the US air transportation system

This paper simulates airline strategic decision making and its impact on passenger demand, flight delays and aircraft emissions. Passenger flows, aircraft operations, flight delays and aircraft emissions are simulated for 22 airports in the US, under three airport capacity scenarios. The simulation results indicate that most system-wide implications for operations and environmental impact seem to be manageable, but local impacts at congested hub airports may be significant. The response of the air transportation system to avoid airports with high delays could significantly impact passenger demand and air traffic for these and directly dependent airports. The simulations also suggest that frequency competition effects could maintain flight frequencies at high levels, preventing a significant shift toward larger aircraft, which would otherwise reduce the impact of the capacity constraints.     

An empirical test of modal choice and allocative efficiency: Evidence from US coal transportation

A generalized shipper transportation cost function is estimated to test whether coal shippers achieve allocative efficiency with respect to market prices when facing limited access to the full range of transportation services. Findings indicate that allocative efficiency with respect to market prices is achieved when shippers have access to all major transportation modes. In contrast, the condition for allocative efficiency is not met with respect to market prices when shippers’ modal choices are limited to trucking and rail services. Findings for the sample of shippers who face limited shipping choices is interpreted as suggesting an over-use of trucks relative to the use of trains due to price distortions of transportation services.     

COVID-19 pandemic and air transportation: Successfully navigating the paper hurricane

This paper aims to analyze and understand the impact of the corona virus disease (COVID-19) on aviation and also the role aviation played in the spread of COVID-19, by reviewing the recent scientific literature. We have collected 110 papers on the subject published in the year 2020 and grouped them according to their major application domain, leading to the following categories: Analysis of the global air transportation system during COVID-19, the impacts on the passenger-centric flight experience, and the long-term impacts on broad aviation. Based on the aggregated reported findings in the literature, this paper concludes with a set of recommendations for future scientific directions; hopefully helping aviation to prepare for a post-COVID-19 world.     

Impacts of high-speed rail on domestic air transportation in China

This study investigates the impacts of high-speed rail (HSR) on domestic air transportation in China using a new comprehensive modeling framework utilizing both demand and supply perspectives. For the first time the assessment was conducted using an improved panel regression model by taking into account of the detailed opening schedules of various HSR services during the period 2001–2014. The research findings reveal that the deployed HSR services have a significant substitutional effect on domestic air transportation in China, but the effect varies across different HSR routes, travel distance and city type. Specifically, the research found a decrease in domestic passengers of 28.2%, in flights of 24.6% and in seat capacity of 27.9% after the introduction of HSR services. The impacts are found much stronger among those air routes that connect major hub within a distance range of 500 to 800 km. The uneven nature of the impact can be seen in the different experiences of selected cities. For example, air travel declined approximately 45% after commencement of the Wuhan-Guangzhou HSR, whereas it fell by 34% after the opening of the Beijing-Shanghai HSR.     

UK air travel preferences: Evidence from an East Midlands household survey

Air travel preferences of the general public are examined from a household survey in the Charnwood Borough Council area of Leicestershire, within the East Midlands region of the UK. Survey analysis shows that individuals frequently fly using low-cost airlines for leisure purposes, and often travel long distances to access airports. The price sensitivity of respondents to changes in air fares varies across the sample. Most respondents agree that there are both economic benefits and environment disbenefits associated with aviation.     

Unobserved heterogeneity in transportation equity analysis: Evidence from a bike-sharing system in southern Tampa

Assessing the equity impacts of transportation systems/policies has become a crucial component in transportation planning. Existing statistical modeling approaches for transportation equity analysis have typically assumed that parameter estimates are constant across all observations and used data aggregated to certain geographic units for the analysis. Such methods cannot capture unobserved factors that are not contained in the dataset, i.e., unobserved heterogeneity, which is likely to be present in the increasingly popular disaggregated datasets. To investigate whether there is unobserved heterogeneity in transportation equity impacts, this study carries out an empirical study focusing on the distribution of individual accessibility to activity locations via bike-sharing in southern Tampa. A disaggregated dataset containing information on individual bike-sharing accessibility and socio-economic factors is modeled with a random parameters logit model that allows for the investigation of possible unobserved heterogeneity. Further, models are estimated using data aggregated to parcel- and TAZ-levels to explore the impacts of data aggregation on model estimation results. The models unveil the unobserved heterogeneity in bike-sharing accessibility among populations in different groups defined by different sociodemographic factors in southern Tampa. These results shed insights into how the inconsistent disparity direction of transportation outcomes across individuals in a population group can be measured from the heterogeneity effects. Finally, a comparison between different models show that to capture such inconsistency, the use of disaggregated data with heterogeneity models is highly recommended for transportation equity analysis.     

Travel and tourism competitiveness index: The impact of air transportation,railways transportation,travel and transport services on international inbound and outbound tourism

The objective of the study is to examine the impact of air transportation, railways transportation, travel and transport services on international inbound and outbound tourism in a panel of 19 tourists - oriented countries, over a period of 1990–2014. By applying principal component analysis, the study constructs travel and tourism competitiveness index for inbound and outbound tourism. The main constructs of inbound tourism index include international tourists' arrival, tourism receipts, receipts of passengers' transports items and travel items while the constructs of the outbound index include international tourists' departure, tourism expenditures, and expenditures for passengers transport and travel items. The result of panel Fully Modified OLS (FMOLS) regression shows that the presence of air transportation, railways transportation, and trade openness positively affect inbound tourism index, while travel and transport services negatively affect tourism competitiveness index. The causality results confirm the bidirectional relationship between inbound tourism, air transportation, railways passengers carried, trade openness and travel and transport services, while there is a unidirectional causality running from inbound index to railway goods transported, from air transport freight to trade factor, and from travel services to air transport freight. Outbound tourism index confirmed the bidirectional causality relationship with air transportation, railways transportation, and travel and transport services, while the causality running from outbound index to trade factor, from air transport passenger carried to travel services, and from railway goods transported to trade and transport services, which support the unidirectional causality relationship between them. The variance decomposition results show that air transportation freight is the contributor that largely influences inbound-outbound tourism, while railways passengers carried and trade openness has the least share to influence inbound and outbound tourism index for the next 10-year period. The impulse response function indicates that air transportation, railways transportation, trade openness and travel services will positively impact on inbound truism while travel and transport services will positively affect outbound tourism for the next 10-year period. The study concludes with the importance of transportation sector that deem desirable to promote tourism worldwide. The concentration of different modes of transportation including air transportation, railways transportation, and travel and transport system would helpful to advance international tourism.     

The effect of low fare air carriers on airfares in the US

This paper examines the role that low fare air carriers play in determining air fares in the US. Regression modeling is used to test variables focusing on geographic and competition issues effecting airfare pricing. Variables tested in the modeling include the presence of low fare carriers in a market, hub domination, market share, and type of destination served. The final results show that low fare carriers play a statistically significant role in airfare determination in the US.     

An econometric analysis of domestic air traffic demand in regional airports: Evidence from India

The Indian aviation industry has a vast potential to grow to cater to its population and commerce through developing air transport services to the regional airports. This paper examines the possible determinants of domestic air traffic demand in Indian regional airports serving below three million passengers per annum. Using multiple regression analysis, we find that distance to the nearest airport and accessibility of the airport significantly affect traffic volumes in regional airports. This study also highlights the specificities of Indian regional airports.     

Measuring the effect of transportation infrastructure on retail firm co-location patterns

This paper studies the effects of transportation infrastructure on the location behavior of competing retail firms. First, in a game theoretic framework that describes the location choices made by retailers with respect to each other, the connection between relative firm location and transportation demand is outlined. Second, a multivariate point pattern statistic based on this theoretical framework is applied to location patterns of fast food outlets to measure the effects that major road infrastructure has on firm location behavior in this sector.The results suggest that transportation infrastructure affects the location behavior of firms with respect to their location in relation to their competitors. Access to important transportation infrastructure induces competing outlets to locate next to each other—a tendency not necessarily observed among outlets without such access. Theoretically, this does not only affect economic outcomes, but also travel demand and consumer accessibility. The findings from this study stress the importance of accounting for how transportation infrastructure changes the location behavior of firms in travel demand frameworks.     

A border effect in airport choice: Evidence from Western Europe

Some commentators suggest that air travelers are reluctant to use a foreign airport as a point of departure for their journey. Such reluctance has implications for marketing and policy measures, especially in border regions and in smaller countries, such as the Netherlands and Belgium. In this study, we tested this supposed barrier effect of national borders with empirical data.Our research is based on a subsample (n = 4083) of a large-scale survey among German, Dutch and Belgian adults. Participants were asked about their most recent flight, preferences regarding long-distance travel, and general travel behavior. The survey information about the most recent trip was linked to the Official Airline Guide with data from 18 airports in the Western European region. On average, however, only 10 airports offered a direct connection to the destination of the respondents’ most recent flight. A conditional logit model with varying choice sets allowed us to model only the relevant airports per respondent, while accounting for other known determinants in airport choice, such as travel time, airline competition, and number of available flights.The model results confirmed our expectations: people strongly prefer a departure airport situated in their own country. The model predictions suggest that without the border effect the share of people in our sample departing abroad would rise from 7.7% to 18.7%. Experience (with multiple airports as a point of departure) mitigates the barrier effect of the border. The performance of our model is good: the median probabilitie for the chosen alternative is 68%. Our research stresses the importance of the barrier effect of borders in airport choice: even when traveling across borders in the European sky, national borders remain important.     

Domestic air passenger traffic and economic growth in China: Evidence from heterogeneous panel models

This paper applies recent panel methodology to examine the short-run dynamics, the long-run equilibrium relationships and the Granger causal relationship between economic growth and domestic air passenger traffic. It is based on the quarterly panel data of 29 provinces in China from the period of 2006Q1 to 2012Q3. Tests for panel unit roots, cointegration in heterogeneous panels and panel causality are employed in a bi-variate panel vector error correction model (PVECM), which is estimated by the system generalized moment method (SYS-GMM). The results show evidence of a long-run equilibrium relationship between economic growth and domestic air passenger traffic. Specifically, 1% increase in the air passenger traffic is found to lead to an increase of 0.943% in real gross domestic product (GDP). A long-run and strong bi-directional Granger causal relationship is found between these two series. It is also found that there is a short-run uni-directional Granger causality running from the domestic air passenger traffic to the economic growth.     

The effects of global alliances on international flight frequencies: Some evidence from Italy

We collect half-yearly data on nonstop flight frequencies offered by carriers on routes originating from Italian regions to European countries in the period 1998–2010. We find that, as the share of flights belonging to global alliances increases, the number of flights offered by airlines simultaneously expands, especially in the case of full-service carriers. Moreover, there is also evidence that the number of global alliances has a positive impact on flight supply.     

Pricing strategies of low-cost airlines: The Ryanair case study

We analyse the pricing policy adopted by Ryanair, the main low-cost carrier in Europe. Based on a year's fare data for all of Ryanair's European flights, using a family of hyperbolic price functions, the optimal pricing curve for each route is estimated. The analysis shows a positive correlation between the average fare for each route and its length, the frequency of flights operating on that route, and the percentage of fully booked flights. As the share of seats offered by the carrier at the departure and destination airports increases, fares tend to decrease. The correlation of dynamic pricing to route length and the frequency of flights is negative. Conversely, as competition increases discounts on advance fares rise.