Effect of Fare and Travel Time on the Demand for Domestic Air Transportation PDF Download
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Author: Steven Edward Eriksen
Publisher:
ISBN:
Category : Aeronautics, Commercial
Languages : en
Pages : 100
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Book Description
Introduction: One of the axioms in the air transportation industry is that advances in technology have led to a greater amount of passenger travel by air. Improvements in airframe and engine design have increased range, speed and payload and have decreased seat-mile costs (in constant dollars), while simultaneously introducing more comfortable and safer travel. The resultant lower ticket prices have made pleasure travel steadily more attractive in the competition for the consumer's disposable income, while the availability of comfortable, high speed travel has increased the air mode's share of business travel. However, it has not been a trivial matter to determine the magnitude of travel that can be attributed to advanced aircraft technology. NASA, as the U.S. government agency responsible for research and technology in commercial aviation, has a natural interest in the applications of the technological improvements it has helped to create. Thus NASA has sponsored research analyzing the economic and operational impact of technological innovations; some of these studies have attempted to quantify the demand for air transportation that improvements in technology have brought about. This report presents the final results of an econometric demand model developed by the MIT Flight Transportation Laboratory under NASA sponsorship over the course of the last three years. During the first two years the conceptual framework for the model was developed and the initial calibration was undertaken.* Preliminary results were encouraging and validation and refinement of the model continued under Langley sponsorship during 1978. The model that was finally developed is useful for analyzing long haul domestic passenger markets in the United States. Specifically, it was used to show the sensitivities of passenger demand to changes in fares and speed reflecting technology through more efficient designs of aircraft; and to analyze, through the year 2000, the impact of selected changes in fares, speeds, and frequencies on passenger demand.
Author: Steven Edward Eriksen
Publisher:
ISBN:
Category : Aeronautics, Commercial
Languages : en
Pages : 100
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Book Description
Introduction: One of the axioms in the air transportation industry is that advances in technology have led to a greater amount of passenger travel by air. Improvements in airframe and engine design have increased range, speed and payload and have decreased seat-mile costs (in constant dollars), while simultaneously introducing more comfortable and safer travel. The resultant lower ticket prices have made pleasure travel steadily more attractive in the competition for the consumer's disposable income, while the availability of comfortable, high speed travel has increased the air mode's share of business travel. However, it has not been a trivial matter to determine the magnitude of travel that can be attributed to advanced aircraft technology. NASA, as the U.S. government agency responsible for research and technology in commercial aviation, has a natural interest in the applications of the technological improvements it has helped to create. Thus NASA has sponsored research analyzing the economic and operational impact of technological innovations; some of these studies have attempted to quantify the demand for air transportation that improvements in technology have brought about. This report presents the final results of an econometric demand model developed by the MIT Flight Transportation Laboratory under NASA sponsorship over the course of the last three years. During the first two years the conceptual framework for the model was developed and the initial calibration was undertaken.* Preliminary results were encouraging and validation and refinement of the model continued under Langley sponsorship during 1978. The model that was finally developed is useful for analyzing long haul domestic passenger markets in the United States. Specifically, it was used to show the sensitivities of passenger demand to changes in fares and speed reflecting technology through more efficient designs of aircraft; and to analyze, through the year 2000, the impact of selected changes in fares, speeds, and frequencies on passenger demand.
Author: United States. National Aeronautics and Space Administration
Publisher:
ISBN:
Category :
Languages : en
Pages : 75
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Book Description
Author: Steven Edward Eriksen
Publisher:
ISBN:
Category : Aeronautics, Commercial
Languages : en
Pages : 45
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Book Description
Introduction: Within the last ten years significant advances in the state-of-the art in air travel demand analysis stimulated researchers in the domestic air transportation field. Among these advances, researchers in academia, industry, and government have investigated the relationship between observed demand and general level of economic activity such as GNP on the one hand and general passenger-perceived characteristics such as fare on the other hand. Advanced econometric techniques have been used to develop these relationships. However, to date very little effort has been devoted to investigating the impact of a change in the supply of air transportation service on the demand for air transportation. Thus, for all practical purposes, there are no analytical economic models which show the complex interrelationship between the supply of and the demand for air transportation. This research report is an attempt to begin to understand these complex interrelationships. During the sixties the demand for air transportation services experienced substantial growth rates due to the fact that fares (in constant dollars) were continually declining (because of increasing productivity of transport aircraft) and partly due to the fact that the level of service offered was continuously increasing, again the result of improvements in technology. However, at the beginning of the current decade the growth in the demand for air transportation services began to exhibit radical and unforeseen changes. These changes were caused by a reversal of the impact of the two factors mentioned earlier, namely that the fares were now increasing (due to rapidly increasing costs, particularly with respect to the price of fuel) and the level of service was decreasing, particularly evidenced by fewer total flights and fewer direct flights. The demand models developed in the sixties were adequate to caution airline managers on the impact of changes in the general state of the economy and changes in fare level. However, since these models did not adequately incorporate the factors relating to the supply of air transportation services, very few analysts were able to predict the impact of a change in the level of service. As a result, the industry was quite surprised to observe suppressed traffic growth rates when the level of service offered was changed as a result of a general recession in the economy and shortage of fuel. Due to the deterioration in the financial position, the carriers began to cut costs by reducing further the level of service offered. However, instead of improving the profitability of the carriers, this strategy further suppressed traffic and hence revenue, resulting in even lower profits. On the basis of evidence from the above discussion, there is now a critical need for the development of economic models that simultaneously incorporate the factors effecting both the demand and the supply of air transportation services. In order to begin to fulfill this need, the Aeronautical Systems Office of Ames Research Center at NASA funded a research project to investigate how the supply related variables (particularly those related directly to technology) contribute to the determination of the demand for air transportation. The research was divided into two parts. The first part, mostly exploratory in nature, was designed to determine whether sophisticated economic models incorporating supply and demand factors can be developed given the state-of-the-art in econometric modeling and the limitations of the existing data. During this phase the thrust of the research effort was first to analyze the existing data, second to analyze the components of the levels of service and third to develop simple models which serve merely to generate avenues of pursuit for further research in the second phase. This report presents the results of the initial exploratory phase of the research project and contains directions for research in the second phase to be carried out in 1976. During the first phase, research efforts were directed at investigating single equation models incorporating a level of service index in addition to the usual fare and socioeconomic terms. The models were calibrated using data from fifty-eight region pairs over a sixteen year period. The level of service index developed in this report represents an improvement over the one incorporated in past models (namely flight frequency). The new level of service index is a nondimensional generalized trip time scaled from zero to one, which takes into account not only the number of flights, but also number of intermediate stops, direct or connecting service, speed of aircraft and most important, the matching of the departure schedules to time variability of demand. Based upon the preliminary results, it appears that the level of service is a more appropriate explanatory variable in the demand model than just frequency. The significant results of the demand models developed in this exploratory stage of the research will be discussed in the following sections of this report. Section 2 describes the reasons for calibrating the models based upon region pair data rather than city pair data. Section 3 differentiates between the supply and demand components of air travel and elaborates upon the development of the level of service index. Section 4 discusses the sampling procedures used in determining the region pairs. Section 5 contains the specification of the single equation models and presents the empirical results. The final section of this report outlines the plans for future research in Phase II of this project.
Author:
Publisher:
ISBN:
Category : Aeronautics
Languages : en
Pages : 738
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Book Description
Lists citations with abstracts for aerospace related reports obtained from world wide sources and announces documents that have recently been entered into the NASA Scientific and Technical Information Database.
Author: United States. Congress. House. Committee on Transportation and Infrastructure. Subcommittee on Aviation
Publisher:
ISBN:
Category : Technology & Engineering
Languages : en
Pages : 92
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Author: George Warren Douglas
Publisher:
ISBN:
Category : Political Science
Languages : en
Pages : 232
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Book Description
Monograph on transport policy in the USA in respect of air transport and the regulation of commercial passenger airlines - presents an economic model of airline competition, and covers the impact of regulation on price structures, costs and efficiency, etc. References and statistical tables.
Author: Reuben Gronau
Publisher:
ISBN:
Category : Transportation
Languages : en
Pages : 104
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Author: Transportation Research Board
Publisher: Transportation Research Board
ISBN:
Category : Business & Economics
Languages : en
Pages : 428
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Book Description
Commercial aviation was one of the first industries affected by the controversial regulatory reforms that began in the 1970s. Beginning in 1975, administrative reforms of the Civil Aeronautics Board gave carriers greater freedom in discounting prices and serving new markets. The Airline Deregulation Act of 1978 removed restrictions on entry, pricing, and routes. Still unresolved in policy and practice, however, is the question of the appropriate role of government. In the interest of informing the public debate about deregulation, the Executive Committee of the Transportation Research Board convened a committee of 15 experts to review air passenger service and safety since deregulation. The findings of the committee and its recommendations are presented in this report.
Author: John Wensveen
Publisher: Taylor & Francis
ISBN: 1000862445
Category : Transportation
Languages : en
Pages : 763
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Book Description
Now in its ninth edition, Air Transportation: A Global Management Perspective by John Wensveen is a well-proven, accessible textbook that offers a comprehensive introduction to the theory and practice of air transport management. In addition to explaining the fundamentals, the book transports the reader to the leading edge of the discipline, using past and present trends to forecast future challenges and opportunities the industry may face, encouraging the reader to think deeply about the decisions a manager implements. The word "Global" has been added to the subtitle for this edition, reflecting an increased emphasis on worldwide operations, including North America, Latin America/Caribbean, Europe, Asia-Pacific, the Middle East, and Africa. The ninth edition focuses on the "Age of Acceleration," addressing trends related to emerging technologies, such as autonomy, artificial intelligence, augmented reality, virtual reality, 3-D printing, data analytics, blockchain, cybersecurity, etc. New material includes extra information on airport management and operations, air carrier business models, aviation risk, safety and security, and how changing political landscapes impact the aviation industry. Enhanced content is supported by the addition of new chapters and online supplemental resources, including PowerPoint presentations, chapter quizzes, exam questions, and links to online resources. This wide-ranging textbook is appropriate for nearly all aviation programs that feature business and management. Its student-friendly structure and style make it highly suitable for modular courses and distance-learning programs, or for self-directed study and continuing personal professional development.
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Aeronautics, Commercial
Languages : en
Pages : 34
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