Investigation of european air transport traffic by utility-based decision model

Abstract

Air transport was traditionally a strictly regulated industry, dominated by national flag carriers and state- owned airports. The global deregulation and liberalisation of air transport resulted in numerous changes, including the evolution of price competition, emergence of low-cost airlines, growth in load factor, airport and airspace capacity problems, etc. Later, the internal market eliminated all commercial restrictions for airlines flying within the European Union (EU). Constraints on routes, number of flights, regulated tariff policies, etc. were removed. Since the issue of the third liberalisation package, EU airlines are permitted to provide air services on any route within the EU. As a result, prices have fallen dramatically, especially on the most popular routes. The air transport sector has had the highest rate of development recently. These issues are discussed in the introduction of this paper. The main scope is to investigate air passenger transport within Europe and to present the mathematical formulation of a disaggregate airport choice model created by the authors. A complex utility function-based model has been developed and verified by the authors. The results of the model are in scope with experience in the real world.