PITFIELD, D.E., CAVES, R.E. and QUDDUS, M.A., 2010. Air line strategies for aircraft size and air line frequency with changing demand and competition: a simultaneous equations approach for traffic on the North Atlantic. Journal of Air Transport Management, 16 (3), pp.151-158.
Airport planners need to know the forecast demand on the facilities provided airside at
airports. For this they need to know how airlines will deal with traffic in terms of the
size of aircraft and frequency of service. In response to increasing demand, airlines
may increase capacity by increasing the frequency of flights or they may choose to
increase aircraft size. This may yield operating cost economies. If the airports they
operate from are capacity constrained they will be limited in the extent that they can
change frequency which will limit their ability to compete with the number of
frequencies offered. Consequently, these airports are excluded as are major hubs as
frequencies will be influenced by connecting passengers. Routes are identified on the
north Atlantic that can be analysed and conclusions are suggested on the basis of three
stage least squares estimates for pooled time series-cross section data. An increase in
passengers on the whole will result in a larger increase in frequency than in aircraft
size but the impact of competition does not yield significant results due to the strategy
of excluding certain categories of airport.