Eric Pels

Access to and competition between airports: a case study for the San Francisco Bay area

In this paper (nested) logit models that describe the combined access mode-airport-choice are estimated. A three level nested logit model is rejected. A two level nested logit model with the airport choice at the top level and the access mode choice at the lower level is preferred. From the estimation results, it is concluded that business travelers have a higher value of time than leisure travelers. In the (conditional) access mode choice, leisure travelers have a higher access cost elasticity (in absolute value), while business travelers have a higher access time elasticity (in absolute value). In general, access time is of large importance in the competition between airports in a region.

Price elasticities of demand for passenger air travel: a meta-analysis

This discussion paper resulted in an article in the Journal of Air Transport Management (2002). Volume 8, issue 3, pages 165-175. The demand for air transport is largely determined by the spending capacity of customers. Thispaper aims to offer more insight into the determinants of price elasticities in the aviation sector. Itseeks to identify both common and contrasting factors that influence the price elasticities, on thebasis of a comparative analysis among a large number of empirical studies in this field. By meansof meta-analytical methods the relative importance of several driving forces (e.g., distance, type ofticket, nature of study etc.) is investigated.

Relative efficiency of European airports

Using data envelopment analysis, efficiency ratios for European airports are determined. It appears that most airports are operating under increasing returns to scale. This is also reflected in the most productive scale size determined for the airports.

High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis

This research develops a methodology to assess infrastructure investments and their effects on transport equilibria taking into account competition between multiple privatized transport operator types. The operators, including high-speed rail, hub-and-spoke legacy airlines and regional low-cost carriers, maximize best response functions via prices, frequency and train/plane sizes, given infrastructure provision, cost functions and environmental charges. The methodology is subsequently applied to all 27 European Union countries, specifically analyzing four of the prioritized Trans-European networks. The general conclusions suggest that the European Union, if interested in maximizing overall social welfare, should encourage the development of the high-speed rail network across Europe.

The Impact of Rail Transport on Real Estate Prices: An Empirical Analysis of the Dutch Housing Market

A hedonic pricing model is estimated based on sales data from three metropolitan areas in the Netherlands (Amsterdam, Rotterdam and Enschede) to analyse the effect of railway accessibility on house prices. Railway accessibility is measured by both the distance to a railway station and an index of quality of railway services provided at the station. Two railway station considerations were taken: the nearest railway station and the most frequently chosen railway station. Correcting for a wide range of other determinants, the model based on the most frequently chosen station outperforms the model based on the nearest railway station in estimating the effect of railway accessibility. The dissimilarity between the results of the two models increases with the increase in the urbanisation level of the metropolitan area.

A distance friction minimization approach in data envelopment analysis: A comparative study on airport efficiency

This paper aims to present a newly developed distance friction minimization (DFM) method in the context of data envelopment analysis (DEA) in order to generate an appropriate (non-radial) efficiency-improving projection model, for both input reduction and output increase. In this approach, a generalized distance function, based on a Euclidean distance metric in weighted spaces, is proposed to assist a decision making unit (DMU) to improve its performance by an appropriate movement towards the efficiency frontier surface. A suitable form of multidimensional projection function for efficiency improvement is given by a Multiple Objective Quadratic Programming (MOQP) model. The paper describes the various steps involved in a systematic manner. The above-mentioned DFM model is illustrated empirically by using a data set on 30 European airports, where the aim is to present a comparative analysis of the efficiency of operational management in these airports. In addition, the comparative analysis of these airports is able to assess both input slacks and output slacks (or a combination of input reduction and output rise).

A NOTE ON AIRLINE ALLIANCES

A recent trend in aviation markets is the emergence of airline alliances. One could argue that the emergence of alliances is a continuation of the process of concentration and consolidation that was first characterized by the emergence of hub-and-spoke networks. The international aviation market is still subject to regulation, and airlines may only have the opportunity to extend their networks to foreign countries by entering an alliance agreement with a foreign airline. But also in fully liberalized aviation markets, airlines are likely to enter alliance agreements. The literature shows that passengers are likely to be better off if airlines enter alliance agreements.

A note on the optimality of airline networks

Abstract In this short paper an explicit check on the optimality of airline networks is formulated using linear marginal cost functions. It is shown that hub-and-spoke networks, which have been investigated in the literature using linear marginal cost functions, may in fact not be an optimal network configuration.

RAILROAD NOISE: ECONOMIC VALUATION AND POLICY

Abstract In developed countries noise annoyance is an important source of environmental concern. Research on noise annoyance caused by railroad traffic is relatively underdeveloped. Here, a causal chain model is presented in which railroad traffic density, noise emission, noise immission and noise annoyance are causally related. Noise level, habituation and railroad usage are determinant factors. Noise annoyance causes social and economic costs, such as property value depreciation. Policy measures, aimed at reducing social and economic costs, are incorporated in various stages of the causal model. These measures can be subdivided into noise regulation and direct prevention measures. Stricter threshold values lead to higher total costs, but may lower social costs per capita. Economic feasibility of policy measures is usually analyzed by means of a cost-benefit case study. Methods of analysis used are diverse and ad hoc. Therefore, results of different case studies are not easily compared in terms of research synthesis.

SUBSTITUTION AND COMPLEMENTARITY IN AVIATION: AIRPORTS VS. AIRLINES

In this paper a model concerning substitution and complementarity on the linkage between airport facilities and airlines from the viewpoint of pricing policy is formulated. This model is used to analyze whether airport pricing policies, e.g. to ensure cost recovery, are compatible with competition for transfer passengers. It is found that airports with a high volume of demand can pursue cost recovery and still be the most preferred hub. Airports with a low level of demand will not be the preferred hub, even if the larger airport charges higher taxes to recover costs.