J.G. de Wit
- Route churn: an analysis of low-cost carrier route continuity in Europe
- Journal of Transport Geography
- Pages (from-to)
- Document type
- Faculty of Economics and Business (FEB)
- Amsterdam School of Economics Research Institute (ASE-RI)
Discontinuity of air routes is a subject that has been analysed in various ways. For example, the complex network approach focuses on network robustness and resilience due to route interruptions during a relatively short period. Also seasonal interruptions of air routes are a well-documented phenomenon in the context of demand variability. However, only recently discussions emerge on the more permanent cessation of air routes, the route churn. Today, European low-cost carriers frequently apply route churn in their networks. To enable early route churn detection in these networks, a regression model is developed in which route characteristics explain the churning likelihood of individual routes. The results of the econometric analysis show that churn rates are higher during an economic downturn, within the Eastern European market, between the Eastern and the Mediterranean market and between primary airports. In addition, we find that distance and the number of seats offered have a significant negative effect on the churn likelihood. The results also show significant effects of market share, seasonality and route age on the chance of cessation. To conclude, the paper demonstrates substantial differences in churn behaviour amongst specific low-cost carriers.
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