Economies of scale in the US airline industry

Ahren Johnston; John Ozment

doi:10.1016/j.tre.2012.09.002

Economies of scale in the US airline industry

Ahren Johnston
, John Ozment

Marketing and Supply Chain Management

Research output: Contribution to journal › Article › peer-review

24 Scopus citations

Abstract

This study investigates economies of scale in the US airline industry using annual data, from 1987 to 2009, on the largest airlines. The paper estimates both a translog and Cobb-Douglas model of both an economic and transportation definition of economies of scale. The study shows that the results from models based on the two definitions are remarkably similar except during rapid growth in output and that the largest US airlines operate under modest scale economies. © 2012 Elsevier Ltd.

Original language	English
Pages (from-to)	95-108
Number of pages	14
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	51
Issue number	1
DOIs	https://doi.org/10.1016/j.tre.2012.09.002
State	Published - Jan 1 2013

Keywords

Airline
Economics
Modeling
Scale economies
Transportation

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10.1016/j.tre.2012.09.002

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Economies of scale in the US airline industry

Abstract

Keywords

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