Technological innovation in the airline industry: The impact of regional jets

B-Tier
Journal: International Journal of Industrial Organization
Year: 2009
Volume: 27
Issue: 1
Pages: 110-120

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper explores the impact of the regional jet (RJ), an important new technological innovation in the airline industry, on service patterns and service quality. The paper's theoretical analysis predicts that the frequency advantage of RJs over jets, a consequence of their small size, should have led to the emergence of point-to-point (PP) service in thin markets where such service was previously uneconomical. However, the evidence contradicts this prediction, showing that markets attracting new PP service by RJs had demographic characteristics similar to those of markets that already had jet PP service or attracted it after 1996. Additional descriptive evidence shows that RJs were used to provide service on a large number of new hub-and-spoke (HS) routes, and that they replaced discontinued jet and turboprop service on many such routes, as well as supplementing continuing jet service. When replacement or supplementation by RJs occurred, passengers benefited from better service quality via higher flight frequencies.

Technical Details

RePEc Handle
repec:eee:indorg:v:27:y:2009:i:1:p:110-120
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-24