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Determinants of Brazilian international flights: The role of hub-and-spoke and infrastructure variables
Institution:1. Empresa Brasileira de Infraestrutura Aeroportuária – Infraero, Rio de Janeiro, Brazil;2. Universidade Federal do Rio de Janeiro, COPPE/UFRJ, Rio de Janeiro, Brazil;1. Sauder School of Business, The University of British Columbia, Canada;2. Research Institute of Economics and Management, Southwestern University of Finance and Economics, PR China;3. Institute of Transport and Logistics Studies, The University of Sydney, Level 11, 173-175 Phillip Street, Sydney CBD, NSW 2000, Australia;4. Academy of Civil Aviation Science and Technology, Beijing, China
Abstract:The objective of this study is to evaluate the determining factors influencing airline companies to operate international origin-destination (O-D) routes from different Brazilian airports. The results are based on a panel data model and support the assumption that statistically significant explanatory variables stem from gravity factors (GDP and an airport competition measure weighted by distance), hub-and-spoke variables and capacity inputs. We find that a composite variable made up by the airport capacity variables – given by the size of the terminal building and the length of runways – and its domestic connections have a positive effect on airport competitiveness. In conclusion, we find that not only well-known demand-side factors, but also supply-side variables – strategic decisions taken by airport management – matter in attracting international flights.
Keywords:Hub-and-spoke model  International flights  Airport infrastructure  Panel data model
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