The Effects Of Non-Stop Distance And Route Circuity On Fares Over The First Ten Years Of U.S. Airline Deregulation

Abstract

This paper will investigate the effects on fares of nonstop flight distance and route circuity over the first ten years of airline deregulation. It will be shown that, even without detailed flight information, a number of inferences can be made about the sources of fare changes solely on the basis of non-stop flight distance and route circuity. Section II reviews the major contributions to research on airline deregulation that will serve as the structural foundation for understanding changes in the effects of nonstop distance and route circuity over the first ten years of airline deregulation. section III describes the estimation technique and functional form of the equations used to estimate the effects of non-stop distance and route circuity during the time period covered by the study. section IV describes the sample set and data used in this study. The results of the two regressions are presented in section V. Finally, conclusions of this study and suggestions for further research are presented in section VI.