SUMMARY ObjectiveScheduled air transport services connect airports throughout the world and thereby enable interaction on a global scale. By doing so, they spur globalization (Hummels, 2007) as well as social and economic development (Lakshmanan, 2011). In order to facilitate integration of regions into global value chains, planners, scholars and policymakers therefore need to understand as to how scheduled air transport services link a region to other markets. For this purpose, connectivity metrics have been developed, which measure the degree of connections between airports (Burghouwt, Redondi, 2013). In particular, the 'connection quality-weighting' approach (Veldhuis, 1997;Burghouwt, de Wit, 2005) has been used to compute the aggregate quality of all available connections at an airport with regard to their properties in quickly bridging distances. However, such a metric has neither been calibrated on the basis of observed passenger behavior nor been computed for the world's airports across a multi-decade time series. This paper sets out to develop the first such metric and to discuss global airline network development between 1990 and 2012 from a connectivity perspective. How Air Transport Connects the World 4 MethodologyThe Global Connectivity Index (GCI) for each airport is computed by summing the connectionquality of each available flight connection weighted by the interaction potential, to which the connection provides access. This requires three levels of analysis. First, on the link-identification level, we identify from OAG flight schedules all scheduled nonstop and onestop connections, which are available to passengers at each airport. Second, on the link-quality level, we compute each connection's frequency and relative connectivity value as compared to (hypothetical) nonstop flights. The relative connectivity value is derived from flight duration and layover time and calibrated through observed routing data for US passengers. Third, on the destination-quality level, we model the interaction potential, to which each worldwide airport provides access. For this purpose, we use gridded wealth-adjusted population data and a distance-decay function. Transaction-specific idiosyncrasies such as tastes or fares, which vary among potential passengers and impact on each passenger's itinerary choice, are not considered since they cannot be aggregated to the route level, yet. Results By computing yearly GCITo date, no analysis exists which evaluates 'quality-weighted' connectivity and/or centrality at the world's airports with the help of an empirically calibrated model. Such a model is developed in this paper. We compute these metrics to analyze worldwide connectivity and centrality trends The remainder of this paper proceeds as follows: In Section 2, the building blocks of 'connection quality-weighted' connectivity and centrality are outlined. Section 3 develops the connectivity and the centrality metrics. Global and world-region trends in connectivity and centrality between 1990 and 2012 are analyzed in Sect...

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The effects of "low-cost carriers" (LCCs) such as Southwest Airlines and JetBlue Airways on the competitive landscape of the U.S. airline industry have been thoroughly documented in the academic literature and the popular press. However, the more recent emergence of another distinct airline business model-the "ultra-low-cost carrier" (ULCC)-has received considerably less attention. By focusing on cost efficiencies and unbundled service offerings, the ULCCs have been able to undercut the fares of both traditional network and low-cost carriers in the markets they serve. In this paper, we conduct an analysis of ULCCs in the U.S. aviation industry and demonstrate how these carriers' business models, costs, and effects on air transportation markets differ from those of the traditional LCCs. We first describe the factors that have enabled ULCCs to achieve a cost advantage over traditional LCCs and network legacy carriers. Then, using econometric models, we examine the effects of ULCC and LCC presence, entry, and exit on base airfares in 3,004 U.S. air transportation markets from 2010-2015. We find that in 2015, ULCC presence in a market was associated with market base fares 21% lower than average, as compared to an 8% average reduction for LCC presence. We also find that while ULCC and LCC entry both result in a 14% average reduction in fares one year after entry, ULCCs are three times as likely to abandon a market within two years of entry than are the LCCs. The results suggest that the ULCCs represent a distinct business model from traditional LCCs and that as the ULCCs grow, they will continue to play a unique and increasingly important role in the U.S. airline industry.

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