Competition and service quality in the U.S. airline industry

Michael J. Mazzeo*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

140 Scopus citations

Abstract

The U.S. government, media, and flying public have expressed great concern in recent years over both airline market concentration and flight delays. This study explores potential connections between the two by examining whether the lack of competition on a particular route results in worse on-time performance. Analysis of data from the U.S. Bureau of Transportation Statistics in 2000 indicates that both the prevalence and duration of flight delays are significantly greater on routes where only one airline provides direct service. Additional competition is correlated with better on-time performance. Weather, congestion, and scheduling decisions also contribute significantly to explaining flight delays.

Original languageEnglish (US)
Pages (from-to)275-296
Number of pages22
JournalReview of Industrial Organization
Volume22
Issue number4
DOIs
StatePublished - Jun 1 2003

Keywords

  • Airlines
  • Competition
  • Flight delays
  • Quality

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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