The economics and geography of regional airline services in six countries

摘要: Abstract Do the determinants of service and pricing on “regional” routes – linking towns smaller cities to main trunk and/or each other differ from established results literature? We study all flights (about 3000) regional 250) with scheduled airline one about 130 or cities, in markets six countries: Australia, Canada, New Zealand, Norway, Sweden, a sample three U.S. states which closely resemble regions studied. For flight we have observations up five prices offered at different times before date. also equipment type social-economic data. Overall, our give qualified support standard gravity model extent between city pairs, though two interesting differences: operators greater flexibility size aircraft they can deploy, finer-grained variability offerings and, presence competition has large effect total supply seats. are able successfully estimate well-specified airfare model, shows strong effects prices, quite substantial intertemporal price discrimination, differences route pricing.