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ABSTRACT FOR 2013 ANNUAL WORLD CONFERENCE AIR TRANSPORT RESEARCH SOCIETY (ATRS) AIRLINE PUNCTUALITY AND LOW

COST COMPETITION IN EUROPE Branko Bubalo1 University of Hamburg & Alberto A. Gaggero University of Pavia

On-Time performance is one of the most critical performance metrics used in airline operations. This paper studies empirically the impact of Low Cost Carriers (LCCs) presence at airports on airline delays. We study the relationship between LCCs market share and airline delays based on microscopic European air traffic data from April 2011 to December 2012. We employ panel data fixed effect techniques on a sample of 99 European airports. Data are collected on a daily basis using a web crawler which retrieved actual delay for each flight departing from or arriving at the airports of the sample. A priory we expect that a larger presence of LCCs at airports could reduce the delay also on other flights gravitating at the same airport. This is because LCCs have shorter turnaround times than legacy carriers, less buffer times and hence possibly more pressure to speed-up embarking and disembarking processes in case of delay. Thereby LCCs take less time to free their departure slots and thus reducing congestion delay. Such mitigation of congestion should be beneficial also to other airlines during turnaround of the aircraft. This paper tests for this positive externality. Drawing from a dataset on hourly weather data we are able to distinct delays from meteorological events which are legally regarded as force majeure. On the policy level with respect to passenger compensation rights in the European Union this paper can contribute to the questions of magnitude of airline penalties in cases of delayed flights or cancellations.

KEYWORDS: Delay, Congestion, Airline Competition, Low Cost Carriers. CLASSIFICATION: (i) Low Cost Carriers and Airline Competition; (ii) Airport and Airline Performance.

University of Hamburg, Institute for Information Systems, Von-Melle-Park 5, 20146 Hamburg, Germany e-mail: branko.bubalo@googlemail.com

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