Airline competition and market frequency: A comparison of the s-curve and schedule delay models

We compare two common ways of incorporating service frequency into models of airline competition. One is based on the so called s-curve, in which, all else equal, market shares are determined by frequency shares. The other is based on schedule delay—the time difference between when travelers wish to travel and when flights are available. We develop competition models that differ only with regard to which of the above approaches is used to capture the effect of frequency. The demand side of both models is an approximation of a nested logit model which yields endogenous travel demand by including not traveling in the choice set. We find symmetric competitive equilibrium for both models analytically, and compare their predictions concerning market frequency with empirical evidence. In contrast to the s-curve model, the schedule delay model depicts a more plausible relationship between market share and frequency share and accurately predicts observed patterns of supply side behavior. Moreover, the predictions from both models are largely the same if we employ numerical versions of the model that capture real-world aspects of competition. We also find that, for either model, the relationship between airline frequency and market traffic is the same whether frequency is determined by competitive equilibrium, social optimality, or social optimality with a break-even constraint.     

A three-stage least squares approach to the analysis of airline strategies for aircraft size and airline frequency on the north Atlantic: an airline case study

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. This article focuses on this trade-off and pays particular attention to the practices of a specific airline. Conclusions are offered on the impact of inter alia competition, changes in aircraft technology, 9/11 and the impact of slot constraints. It appears that changes in size are more important than frequency, which is consistent with the presence of slot constraints and there is a significant impact of competition. As the concentration of carriers increases, so aircraft size falls. 9/11 also has a significant impact on traffic whereas the introduction of the Boeing 777, as an illustration of a change in technology, does not.     

Urban spatial location advantage: The dual of the transportation problem and its implications for land-use and transport planning

Numerous recent studies have investigated the relationship between the location of jobs and housing in urban areas and how this relates to urban commuting patterns. Few have utilised the dual of the transportation problem of linear programming (TPLP) to provide insights into these relationships Accordingly, this analysis utilises the TPLP to determine dual variable values (shadow prices) for a study area in Dublin, Ireland. The approach determines the pattern of relative location advantage for the peak and off-peak travel periods and for public and private transport for 1991 and 2001. The results are set against the expected results for hypothetical urban structures. The results show that the pattern of relative location advantage has altered sharply over the study period for off-peak trip-making but has remained more or less the same for trip-making in the peak period. For the off-peak period, the pattern of relative location advantage has shifted from the central area to the periphery specifically for private transport trips; for public transport, the pattern has remained focused on the city centre. This indicates that private transport users can react more quickly to changes in the distribution of land-use activities than their public transport counterparts due to the relatively fixed nature of the latter mode. This implies that the public transport network needs to be reorganized to better reflect the revised pattern of trip-making specifically for the off-peak period. The results demonstrate the value of using the approach for providing information about the spatial organisation of land uses within cities and where future development may be targeted.     

Game-theoretical models for competition analysis in a new emerging liner container shipping market

This paper develops three game-theoretical models to analyze shipping competition between two carriers in a new emerging liner container shipping market. The behavior of each carrier is characterized by an optimization model with the objective to maximize his payoff by setting optimal freight rate and shipping deployment (a combination of service frequency and ship capacity setting). The market share for each carrier is determined by the Logit-based discrete choice model. Three competitive game strategic interactions are further investigated, namely, Nash game, Stackelberg game and deterrence by taking account of the economies of scale of the ship capacity settings. Three corresponding competition models with discrete pure strategy are formulated as the variables in shipment deployment are indivisible and the pricing adjustment is step-wise in practice. A ɛ -approximate equilibrium and related numerical solution algorithm are proposed to analyze the effect of Nash equilibrium. Finally, the developed models are numerically evaluated by a case study. The case study shows that, with increasing container demand in the market, expanding ship capacity setting is preferable due to its low marginal cost. Furthermore, Stackelberg equilibrium is a prevailing strategy in most market situations since it makes players attain more benefits from the accommodating market. Moreover, the deterrence effects largely depend on the deterrence objective. An aggressive deterrence strategy may make potential monopolist suffer large benefit loss and an easing strategy has little deterrence effect.     

Study on some bus transport networks in China with considering spatial characteristics

Many real-world networks are embedded in spaces. Recent studies have found that spatial characteristics are closely related to network features. Bus transport networks (BTNs) are typical spatially embedded networks, but their spatial characteristics are commonly disregarded in previous researches. In this paper, we propose a new spatial representation model for BTNs with information on the geographical location of bus stations and routes, for which we named as the ES model. The new model aids in the study of real-world BTNs. By performing a statistical study with the new representation model on three typical BTNs in China, namely the Beijing, Shanghai and Hangzhou BTNs, we identify some network features that are consistent with those revealed by previous studies, as well as some new features such as high clustering of short-distance station pairs (SSPs) and small average number of bus routes in a path. The result shows that the existence of SSPs can significantly influence the characteristics of BTNs. Besides, with the help of the ES model, we designed a new transfer algorithm for BTNs.     

Effect of open skies in the Middle East region

This research aims to estimate potential inter-regional passenger flows for air transport in the Middle East under open skies polices, once deregulation agreements are reached between neighboring countries. To arrive at reasonable demand estimates, Western and Eastern European demand data was analyzed as a first step, since it is assumed that current Middle Eastern demand is distorted as a direct result of regional political instability. The major factors affecting demand, based on the European dataset, included population size, gross domestic product (GDP) per capita, absolute difference in GDP per capita between two countries, great circle distance and membership of the European Union and World Trade Organization. Subsequently, a 21 country database was estimated for passenger flow in the Middle East region on an average peak season day. The demand estimations became input for a hub location model (p-hub median formulation) in order to achieve the second major aim of this research, objective identification of potential regional gateways. The results proved robust to both single and multiple allocation model assumptions, with Cairo and Tehran consistently achieving hub status, along with Istanbul and Riyadh, as the number of potential hubs increased. Finally, this research shows that under conditions of peace, given existing socio-economic indicators, inter-regional passenger demand flow could increase by upwards of 51% and regulatory authorities ought to consider the necessary infrastructure and demand management policies to enable the conservative regional demand growth estimated.     

Effect of slot trading on route-level competition: Evidence from experience in the UK

This paper examines the effect of airport slot trading on route-level competition using data on slot trades in the UK. The estimation results suggest that the slot trades among partner carriers contributed to slightly increased competition measured in terms of the number of competitors per route, whereas the slot trades between rival carriers had a negative effect on the number of competitors at the route level. The results suggest that carriers seem to have used the slots obtained from their rivals not to compete with each other but to strengthen their dominance on their existing routes. This behavior is considered to be derived from the bilateral nature of slot trading, which facilitates mutual forbearance among competitors. To cope with the potential anticompetitive effect of mutual forbearance, it would be worthwhile to explore slot-trading schemes that make it harder for carriers to take advantage of multimarket contact as well as alternative methods of primary slot allocation.     

A two-sided market platform analysis for the electric vehicle adoption: Firm strategies and policy design

This study explores how to facilitate the electric vehicle (EV) diffusion from a two-sided market platform competition. We develop a stylized model depicting the platform competition between electric and gasoline vehicles by combining indirect network effects of consumer and energy supplier sides as well as vehicle manufacturers’ profits. The findings of this study provide several meaningful strategic and policy implications for EV manufacturers and policymakers who wish to enhance EV diffusion. First, EV sales are significantly influenced by indirect network effects from the energy supplier side to the consumer side, and vice versa. This implies that EV manufacturers who wish to boost EV diffusion should implement a strategy providing energy suppliers with incentives to willingly join the EV platform. Second, the dynamic nature of the effects of energy costs on platform competition might render counter-intuitive evidence that the drop in oil prices does not always negatively influence EV sales. This requires EV manufacturers to prepare a contingent strategy adjusting to such unexpected conditions. Third, governments should consider the energy supplier side as well as the consumer side in designing EV diffusion policies. When governments have a very challenging EV diffusion target, a balanced policy, which treats both gasoline and electric vehicle technologies fairly, may be more effective than a consumer subsidy policy.     

A spatial Difference-in-Differences estimator to evaluate the effect of change in public mass transit systems on house prices

Evaluating the impact of public mass transit systems on real-estate values is an important application of the hedonic price model (HPM). Recently, a mathematical transformation of this approach has been proposed to account for the potential omission of latent spatial variables that may overestimate the impact of accessibility to mass transit systems on values. The development of a Difference-in-Differences (DID) estimator, based on the repeat-sales approach, is a move in the right direction. However, such an estimator neglects the possibility that specification of the price equation may follow a spatial autoregressive process with respect to the dependent variable. The objective of this paper is to propose a spatial Difference-in-Differences (SDID) estimator accounting for possible spatial spillover effects. Particular emphasis is placed on the development of a suitable weights matrix accounting for spatial links between observations. Finally, an empirical application of the SDID estimator based on the development of a new commuter rail transit system for the suburban agglomeration of Montréal (Canada) is presented and compared to the usual DID estimator.     

Designing an integrated distribution system for catering services for high-speed railways: A three-echelon location routing model with tight time windows and time deadlines

An emerging task in catering services for high-speed railways (CSHR) is to design a distribution system for the delivery of high-quality perishable food products to trains in need. This paper proposes a novel model for integrating location decision making with daily rail catering operations, which are affected by various aspects of rail planning, to meet time-sensitive passenger demands. A three-echelon location routing problem with time windows and time budget constraints (3E-LRPTWTBC) is thus proposed toward formulating this integrated distribution system design problem. This model attempts to determine the capacities/locations of distribution centers and to optimize the number of meals delivered to stations. The model also attempts to generate a schedule for refrigerated cars traveling from distribution centers to rail stations for train loading whereby meals can be catered to trains within tight time windows and sold before a specified time deadline. By relaxing the time-window constraints, a relaxation model that can be solved using an off-the-shelf mixed integer programming (MIP) solver is obtained to provide a lower bound on the 3E-LRPTWTBC. A hybrid cross entropy algorithm (HCEA) is proposed to solve the 3E-LRPTWTBC. A small-scale case study is implemented, which reveals a 9.3% gap between the solution obtained using the HCEA and that obtained using the relaxation model (RM). A comparative analysis of the HCEA and an exhaustive enumeration algorithm indicates that the HCEA shows good performance in terms of computation time. Finally, a case study considering 156 trains on the Beijing-Shanghai high-speed corridor and a large-scale case study considering 1130 trains on the Chinese railway network are addressed in a comprehensive study to demonstrate the applicability of the proposed models and algorithm.     

Impacts of information technology and urbanization on less-than-truckload freight flows in China: An analysis considering spatial effects

Understanding the relationship between socioeconomic factors and the Less-than-Truckload (LTL) freight flows is important for transportation planners and policy makers. This paper explores the impacts of information technology, urbanization on LTL freight flows by using a spatial autocorrelation model with freight flow data from a leading LTL company in China. The results show that all IT variables and urbanization variables have positive effects on freight flows. Distance, as expected, is negatively correlated with the freight flow volume. The application of the spatial autocorrelation model further shows that origin dependence, destination dependence and OD dependence are all significant, justifying the consideration of spatial interdependence. Finally, policy implications are discussed based on the estimated results. These findings shed light on the impacts of internet and urbanization on freight transportation, and contribute to the design of freight policies and the development of the LTL industry.     

Exploring spatial variety in patterns of activity-travel behaviour: initial results from the Toronto Travel-Activity Panel Survey (TTAPS)

Studies of urban travel behaviour typically focus on weekday activities and commuting. This is surprising given the rising contribution of discretionary activities to daily travel that has occurred during the last few decades. Moreover, current understanding of the relationship between travel behaviour and land use remains incomplete, with little research carried out to explore spatial properties of activity-travel behaviour during the off-peak and weekend time periods. Weekend behaviours, for example, influenced by the availability of time and the spatiotemporal distribution of “weekend” destinations, likely produce spatially and temporally distinct activity-travel patterns. Using data from the first wave of the Toronto Travel-Activity Panel Survey (TTAPS), this paper examines an area of research that has received little attention; namely, the presence of spatial variety in activity-travel behaviour. The paper begins by looking at the extent to which individuals engage in spatially repetitive location choices during the course of a single week. Area-based measures of geographical extent and activity dispersion are then used to expose differences in weekday-to-weekend and day-to-day activity-travel patterns. Examination of unclassified activities carried out over a 1 week period reveals a level of spatial repetition that does not materialise across activities classified by type, travel mode, and planning strategy. Despite the inherent spatial flexibility offered by the personal automobile, spatial repetition is also found to be surprisingly similar across travel modes. The results also indicate weekday-to-weekend, and day-to-day fluctuations in spatial properties of individual activity-travel behaviour. These findings challenge the utility of the short-run survey as an instrument for capturing archetypal patterns of spatial behaviour. In addition, the presence of a weekday-to-weekend differential in spatial behaviour suggests that policies targeting weekday travel reduction could have little impact on travel associated with weekend activities.

The evaluation of the spatial integration of station areas via the node place model; an application to subway station areas in Tehran

Urban planners usually consider the transportation system and land use systems in different ways. The node place model is an analytical tool that explores the interaction between the transportation and land use systems in station areas in an urban region. The essential issue with the node place model is spatial. To address this issue, spatial indices are added to the model. Another purpose of this paper is to provide a procedure to identify the most effective transportation and land use dynamics in station areas. In this respect, canonical correlation analysis was conducted on data concerning Tehran’s subway stations. The resulting spatial indices have a fairly logical relationship with other transportation and land use indices, and it is useful to incorporate these indices in the node place model. The case studies demonstrated that a well-integrated, continuous and dense spatial configuration of the street network in station areas is associated with an increase in the variety and intensity of activities, an increase in the workforce and better accessibility for the station by attracting greater pedestrian movement. Additionally, these case studies indicated that to sustain a station area, the streets that exist in a station area and the streets that are connected to a station should be connected to the streets that locally benefit from well-integrated areas within fewer steps.     

A latent variable representation of count data models to accommodate spatial and temporal dependence: Application to predicting crash frequency at intersections

This paper proposes a reformulation of count models as a special case of generalized ordered-response models in which a single latent continuous variable is partitioned into mutually exclusive intervals. Using this equivalent latent variable-based generalized ordered response framework for count data models, we are then able to gainfully and efficiently introduce temporal and spatial dependencies through the latent continuous variables. Our formulation also allows handling excess zeros in correlated count data, a phenomenon that is commonly found in practice. A composite marginal likelihood inference approach is used to estimate model parameters. The modeling framework is applied to predict crash frequency at urban intersections in Arlington, Texas. The sample is drawn from the Texas Department of Transportation (TxDOT) crash incident files between 2003 and 2009, resulting in 1190 intersection-year observations. The results reveal the presence of intersection-specific time-invariant unobserved components influencing crash propensity and a spatial lag structure to characterize spatial dependence. Roadway configuration, approach roadway functional types, traffic control type, total daily entering traffic volumes and the split of volumes between approaches are all important variables in determining crash frequency at intersections.     

A framework to analyze the vulnerability of European road networks due to Sea-Level Rise (SLR) and sea storm surges

This study proposes a framework to explore the concepts of exposure, vulnerability and connectivity in EU road network and to assess the potential transportation infrastructure sensitivities towards Sea-Level Rise (SLR) and storm surges. The magnitude and significance of impacts were determined and knowledge of network robustness was built up based on existing climate data and on future trends. Various spatial databases were integrated and a four-stage transport model was used to explore the likely impacts of network degradation. The pattern of the network was assessed via both node- and link-based measurements, where different road databases, namely TRANS-TOOLS and Tele Atlas/TomTom, were employed in order to analyze the impact of spatial resolution within network connectivity analyses. This general framework developed for European Union, was tested on a specific and articulated case study area; namely, the north-east coastal region of Spain. The research conducted, yielded useful methods for the analysis of network vulnerability, where impacts are more significant in regional accessibility patterns. Accessibility indicators at the regional level changed drastically, with some regions showing up to a 26% decrease. According to the results of network connectivity indicators, the changes in network topology have reduced the number of alternative routes and placed more pressure on the transport system. The implementation of this framework and quantitative assessment methodologies outlined in this paper could be employed to assist policy makers to recognize the opportunities that may arise or diminish the adverse effects.     

Modeling lane-changing behavior in a connected environment: A game theory approach

Vehicle-to-Vehicle communications provide the opportunity to create an internet of cars through the recent advances in communication technologies, processing power, and sensing technologies. A connected vehicle receives real-time information from surrounding vehicles; such information can improve drivers’ awareness about their surrounding traffic condition and lead to safer and more efficient driving maneuvers. Lane-changing behavior, as one of the most challenging driving maneuvers to understand and to predict, and a major source of congestion and collisions, can benefit from this additional information. This paper presents a lane-changing model based on a game-theoretical approach that endogenously accounts for the flow of information in a connected vehicular environment. A calibration approach based on the method of simulated moments is presented and a simplified version of the proposed framework is calibrated against NGSIM data. The prediction capability of the simplified model is validated. It is concluded the presented framework is capable of predicting lane-changing behavior with limitations that still need to be addressed. Finally, a simulation framework based on the fictitious play is proposed. The simulation results revealed that the presented lane-changing model provides a greater level of realism than a basic gap-acceptance model.     

鱼梁航运枢纽鱼道及鱼类增殖保护站设计浅述

航运枢纽的建设对鱼类生态环境及鱼类资源影响较大,为减缓工程对鱼类的不利影响,文章通过综合分析,提出采取修建过鱼设施和建立增殖保护站、开展人工增殖放流为主要鱼类保护措施,并结合鱼梁枢纽工程,对鱼道结构及布置、增殖保护站布置及生产方式等设计进行介绍。     

Performance assessment of transport services with the ERM-NDEA model: evidence from a domestic airline in Taiwan

Abstract

This paper estimates comprehensive operational performance measures for transport services. A network efficiency approach is used to analyze the production efficiency, service efficiency, and operational efficiency in a unified framework to reflect the transportation service characteristics of airline operations. We show how a modified version of the network data envelopment analysis model can be utilized for evaluating the performance of air route operations. This study considers 15 air routes operated by a domestic airline in Taiwan to highlight the value of the approach. The results of the analysis show the inputs and consumed outputs leading to production inefficiency and service inefficiency respectively as well as the magnitudes of excesses and shortfalls.     

Assessment of product debundling trends in the US airline industry: Customer service and public policy implications

This paper reviews product debundling trends that have occurred in the US airline industry. Multiple sources of ancillary fees related to ticketing refunds and exchanges, checked baggage, on-board pets, preferred and/or advanced seating assignments, frequent flyer ticket redemptions, and day of departure standby policies are reviewed. Despite the fact that both low cost and network carriers stress the importance of future ancillary fees in their investor reports, our assessment suggests that these fees will be more broadly adopted by low cost carriers. We anticipate that many network carriers will eliminate ancillary fees, particularly as they begin to recognize how these fees can impact other system performance objectives such as minimizing the number of misconnecting passengers. We estimate that the debundling phenomenon has diluted revenues to the US Airport and Airways Trust Fund by at least 5%.