Comparative analysis of route selection behaviors between full-service and low-cost airlines

Abstract

In order to study the similarities and differences between the route selection strategies of full-service and low-cost airlines, Spring Airlines and Eastern Airlines are the representatives of low-cost and full-service airlines respectively, and based on the actual operation data of Spring Airlines and Eastern Airlines routes in the past seven years, the panel-probit model is used to investigate the impact of route characteristics, airport characteristics, characteristics of competing airlines, and the characteristics of airlines on the route selection behaviors of full-service and low-cost airlines. The results show that the route HHI, time slot control airport, airport size and number of competitors have a significant impact on the route decision of the Eastern Airlines, while the time slot control airport, airport HHI and serviced airports have a significant impact on the route decision of the Spring Airlines. Finally, based on the empirical results, the similarities and differences between the decision of Eastern Airlines and Spring Airlines routes are summarized, which provides a theoretical basis for the decision-making of full-service and low-cost airlines.