Transborder demand leakage and the US–Canadian air passenger market

Elwakil, Omar Sherif; Windle, Robert; Dresner, Martin

doi:10.1016/j.tre.2013.01.005

Cited by 17 publications

(5 citation statements)

References 7 publications

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“…The importance of LCCs to liberalization can also be testified in the Canadian market, where cross-border LCC services have been limited. Elwakil, Windle, and Dresner (2013) estimated that about 5 million travelers avoid flying on trans-border routes every year. Instead, they choose to use American airports that are close to the U.S.ÀCanada border and cross the border via surface transport.…”

Section: Dynamics Of Liberalization: Increased Competition and Improvmentioning

confidence: 99%

“…Instead, they choose to use American airports that are close to the U.S.ÀCanada border and cross the border via surface transport. Elwakil et al (2013) argued that such "demand leakage" occurs mainly due to the lack of LCC competition. Other contributing factors may include the alliance memberships of United States and Canadian carriers, and the antitrust immunity granted for price setting and scheduling.…”

Section: Dynamics Of Liberalization: Increased Competition and Improvmentioning

confidence: 99%

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Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth – An Overview

Oum

2014

Advances in Airline Economics

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This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our investigation concludes that liberalization has led to substantial economic and traffic growth. Such positive outcomes are mainly due to increased competition and efficiency gains in the airline industry, and positive externalities to the overall economy. Liberalization allows airlines to optimize their networks, and thus may introduce substantial demand and financial uncertainty to airports. Vertical arrangements between airlines and airports may offer a wide range of benefits to the parties involved, yet such arrangements could also lead to airline entry barriers which reduce the effects of liberalization. Three approaches have been developed to model the effects of liberalization in complex market conditions, which include the analytical, econometric (PT) and computational network methods. These approaches should be selectively utilized in policy studies on liberalization.

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Section: Dynamics Of Liberalization: Increased Competition and Improvmentioning

confidence: 99%

Section: Dynamics Of Liberalization: Increased Competition and Improvmentioning

confidence: 99%

Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth – An Overview

Oum

2014

Advances in Airline Economics

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“…This overlap can lead to airport leakage problems in which passengers tend to choose a departure airport outside their area with the characteristics of a departure airport that is larger than the closest airport in their area. This phenomenon can occur due to airports being near each other, where passengers can be motivated by better connectivity in terms of road accessibility and the variety of modes offered or more flight frequency due to the airport being a larger hub [5], [8]. In addition to connectivity, passengers have different priorities depending on the purpose of their travel, so there are different assessments for choosing the departure airport.…”

Section: Figure 1 Location Of West Java Multi-airportmentioning

confidence: 99%

“…This condition occurs when passengers residing in proximity to multiple airports choose airports outside their immediate region as their departure points [4]. Airport traffic leaks s often observed when airports are in close proximity to each other, motivating passengers to drive longer distances, sometimes significant, to initiate their journeys from more distant airports due to factors such as lower ticket prices or improved connectivity [5], [6].…”

Section: Introductionmentioning

confidence: 99%

Understanding Airport Leakage at Multi Airport in West Java through Accessibility Characteristics to the Airport

Putro,

Trinanda,

Iscahyono

2023

JTSP

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Airport development must pay attention to the catchment area of the surrounding airport so that there is no overlap, which leads to airport leakage problems. Airport leakage is a phenomenon where passengers avoid local airports in their area of residence and choose airports outside their territory. The scope of study in this research is West Java Multi-airport, which consists of Kertajati Airport and Husein Sastranegara Airport, as well as Soekarno-Hatta Airport and Halim Perdanakusuma Airport as airports around West Java. The purpose of this study was to determine whether the phenomenon of airport leakage occurred at the Multi-airport of West Java Province. The study findings concluded that the addition of Kertajati Airport in West Java Province improved air connectivity in terms of flight routes but was not accompanied by an increase in the number of passengers. This phenomenon can be attributed to airport leakage, whereby passengers in West Java tend to favor Soekarno-Hatta Airport and Halim Perdana Kusuma Airport. These airports provide more flight options, offering greater time flexibility and enhanced accessibility.

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“…Privatization of airports, and consequently the fees that they charge, could induce passengers to use other out-of-country airports. Notable is the leakage of Canadian passengers to US airports(Elwakil et al, 2013), and of the Dutch to bordering countries during 2008-2009 when an airport tax was in effect. It would be interesting to explore airport privatization under the added complexity of airport competition (e.g.,Basso and Zhang, 2007b;Forsyth et al, 2010), especially when the two airports are located in different countries, and when airports are congestible (e.g.,Basso and Zhang, 2007b;Benoot et al, 2013).…”

mentioning

confidence: 99%