Airport consolidation and the provision of air services
Journal article, Peer reviewed
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Original versionJournal of Air Transport Management. 2017, 60 31-44. 10.1016/j.jairtraman.2016.12.010
Airport policy involves decisions about not only the sizes of airports but how many airports should serve a given area. I test the arguments for airport consolidation by estimating the effect of the number of airports on total local traffic using US data and a historical instrument for the number of airports. Cities that are randomly allocated a larger number of airports are found to host more air traffic and flights to more destinations. Furthermore, the effect is largely due to a greater number of transit passengers, so cities with multiple airports are more likely to be chosen as airline hubs.