“A note on optimal airline networks under airport congestion”

(joint with Xavier Fageda)

 

Abstract: We extend the monopoly case without congestion in Brueckner (2004) by examining network choice in a duopoly where airport congestion can occur. Airlines prefer hub-and-spoke configurations, even if this implies higher congestion costs. Airlines may be inefficiently biased towards hub-and-spoke networks.


Keywords: airline networks; network efficiency; airport congestion


JEL classification: L13; L93; R41