Airline service quality and economic factors: An ARDL approach on US airlines

Stamolampros, Panagiotis and Korfiatis, Nikolaos (2019) Airline service quality and economic factors: An ARDL approach on US airlines. Journal of Air Transport Management, 77. pp. 24-31. ISSN 0969-6997

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Abstract

This study examines the impact of interest rates, fuel prices, and market concentration on airline service performance. Rather than focusing on an airline-level analysis, we employ aggregated data from the US Department of Transportation (DOT) and the Airline Consumer Report (ACR) to explore four airline service performance metrics, namely: on-time performance, cancelled flights, mishandled baggage, and passenger's complaints. We gauge the long run effect of the variables of interest using an Autoregressive Distributed Lag bound approach. The findings reveal long-term linkages between airline service levels and the variation in interest rates and market concentration providing new evidence on the trade-off relation between financial pressures and service quality and has practical implications for both regulators and airline managers. Our results are robust to business cycle effects including the great recession.

Item Type: Article
Uncontrolled Keywords: airline service levels,ardl bound test,market concentration,economics, econometrics and finance(all) ,/dk/atira/pure/subjectarea/asjc/2000
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Depositing User: LivePure Connector
Date Deposited: 25 Mar 2019 10:30
Last Modified: 11 Jun 2020 01:04
URI: https://ueaeprints.uea.ac.uk/id/eprint/70327
DOI: 10.1016/j.jairtraman.2019.03.002

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