The XIX Conference on Applied Economics took place at Seville, between 9th and 10th of June. It was a very nice place, very nice people, with a superb program both in English and Spanish. Click here to check the particular information about the conference.
One of the paper presented by the group AEM (Applied Economics & Management Research Group), actually the one I presented was entitled: Measuring the effects of LCCs on traditional and charter airlines: a case study of the Spanish airport system. Below is the abstract and here are the slides. Hopefully a full paper in an international journal will soon come up with all this material.
Abstract: The advent of the low-cost carriers (LCCs) in the middle of the 1990s brought an end to the European airline market being shared between network carriers (NCs) and charter carriers (CCs). Using a robust methodology based on transfer function models, the present paper seeks to offer empirical evidence as to the size and typology of the effects that LCCs have had on traffic for NCs and, in a wholly original way, CCs, using the Spanish airport system as a case study. Our results show a clear substitution relationship between both CCs and NCs and LCCs in their typical niche markets, national and European flights. New demand generated in the domestic air market only amounts to 30% of LCC traffic, while the percentage exceeds 80% in the case of the European market. NCs can be seen to have reacted positively with respect to flights outside Europe. The complete lack of sensitivity of CC traffic to terrorist attacks, the day of the week, air accidents and the economic crisis is also evident. CCs present differentiated behavior that clearly shows that they should be considered an independent category that justifies individualized analyses, such as the present study.